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- Canada: Markit Manufacturing PMI falls slightly to 56.5 in December versus 57.5 expected
Canada: Markit Manufacturing PMI falls slightly to 56.5 in December versus 57.5 expected
According to IHS Markit, Canadian Manufacturing PMI fell slightly to 56.5 in December from 57.2 in November. That was less than the expected decline to 57.5.
IHS Markit comments:
"Canadian manufacturers closed 2021 with a robust expansion in operating conditions as the sector continues to reap the benefits of strong domestic and international demand. Moreover, anticipation of greater customer orders encouraged firms to stockpile at record rates during December."
"Whilst on the whole latest data are positive, it is difficult to ignore the impacts of the pandemic on the sector. Over the last year or so, material shortages have been prominent, and whilst production has continued to expand, the latest uptick was the softest for ten months. In addition, another marked rise in backlogs suggests persisting skill shortages."
"News of the Omicron variant paired with sustained supply shortages has been a cause for concern among some Canadian manufacturers. The impacts of the new variant are still unknown, but policy-makers remain committed to containing the virus."
Market Reaction
USD/CAD did not see any notable reaction to the latest PMI survey result.
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