Manufacturing PMI from Markit for Canada
- Biggest one-month jump on record
- Highest reading since the survey began in 2010
- Prior was 55.8
- Input and output prices were at 26-month highs
- New orders at three-month high
- Sixth consecutive month above 50.0
Comments from Markit:
"Latest data indicated the Canadian manufacturing sector concluded 2020 with a record month-on-month improvement in business conditions. The headline PMI figure reached 57.9, the highest since the survey began over a decade ago. New orders and output supported the latest rise with robust increases registered. As a result, firms continued hiring efforts, although capacity pressures emerged with incomplete work rising further in December. "Material shortages and strong inflationary pressures partly weighed on profit margins, although firms increased stocked inputs to limit the impact of future shortages."Overall, the sector continues to recover from the second quarter downturn, although relatively high virus case numbers still pose a threat to the industry should restrictions tighten again."
The headlines say it all here, these are very strong numbers and will help to underpin the rally in the Canadian dollar.
