Canada Manufacturing PMI2011-2021 Data | 2022-2023 Forecast | Calendar | Historical

The IHS Markit Canada Manufacturing PMI rose to 54.8 in February of 2021 from 54.4 in the previous month. The latest reading pointed to the 8th straight month of expansion in the country's factory activity and at a stronger pace. Solid increases were seen in new orders, output, employment and purchasing activity. However, intense supply chain pressures persisted, with delivery times lengthening markedly, as ongoing coronavirus restrictions had often led to material shortages and transportation delays. On the price front, the rate of input price inflation accelerated amid reports of higher material, mainly metals, and transportation costs. Meantime, the rate of output price inflation also quickened. Finally, sentiment regarding production over the next 12 months remained upbeat, with the degree of optimism reaching a five-month high, amid hopes of the complete easing of virus-related restrictions following a largely successful vaccine rollout programme.

The IHS Markit Canada Manufacturing PMI fell to 54.4 in January of 2021, down sharply from 57.9 in December. The latest reading pointed to the seventh consecutive month of expansion in manufacturing activity although at the softest pace since July. Output, new orders and employment increased at weaker rates amid ongoing coronavirus restrictions. At the same time, manufacturing firms continued to boost their purchasing activity with input buying increasing modestly. Still, border restrictions and port congestion led to longer input delivery times and a rise in backlogs. On the price front, input cost inflation remained sharp with manufacturers reporting higher prices for aluminium, steel, and transportation. As a result, output charges were also lifted amid efforts to protect profit margins. Looking ahead, firms remained optimistic that output in the year ahead will improve, although the longer-term impact of COVID-19 weighed slightly on the degree of optimism.

The IHS Markit Canada Manufacturing PMI rose to 57.9 in December of 2020 from 55.8 in November. The latest reading pointed to the strongest overall improvement in business conditions since the survey began in October 2010, as output, new orders and employment increased at sharp rates. Purchasing activity also went up, with input buying rising solidly. Still, there were widespread reports that supply chain pressures mounted in December, mainly linked to the restrictions imposed to curb the surge in coronavirus cases. On the price front, input prices rose the most since October of 2018, due to higher raw material and transportation costs. At the same time, selling prices also increased at the quickest pace for over two years, amid sharp rises in operating expenses and resilient demand conditions. Finally, sentiment improved to the strongest since September, amid expectations of greater demand, business expansions and promising vaccine developments.

The IHS Markit Canada Manufacturing PMI edged up to 55.8 in November of 2020 from 55.5 in October, pointing to strong factory growth for the 5th month. A robust expansion in new orders helped underpin another sharp improvement in business conditions. Output and purchasing activity rose solidly, and firms added to workforces for the fifth straight month. Despite efforts to increase workforce numbers, backlogs rose again at manufacturers, signalling capacity pressures. Output prices increased at the fastest pace since February 2019, as higher raw material and transportations costs were passed onto consumers. Meanwhile, sentiment remained positive with firms expecting the passing of the coronavirus disease in the year ahead.