Canada manufacturing survey from Markit:

  • Strongest in 10-year survey history
  • Prior was 54.8
  • Backlog of orders at second-highest on record
  • Highest rise in input costs since Aug 2018
  • Second fastest rise in output prices since survey began
  • New orders at 3rd highest on record

Comments from IHS Markit:

"Canadian manufacturers ended the first quarter of 2021 on an upbeat note, with the headline PMI figure improving to the strongest in the ten-year history of the survey. The growth was driven by stronger demand as COVID-19 restrictions continue to ease across the provinces. Meanwhile, a near-record rise in backlogs suggests greater employment in the months ahead.

"Turning to areas of concern, global supply chain pressures continued in March. Border restrictions and tighter COVID-19 measures in international markets continued to hinder the supply of inputs. As a result, firms have had to incur rising costs and production delays. That said, the more resilient demand environment has allowed firms to protect profit margins by raising selling prices.

"Overall, the Canadian manufacturing sector has performed well throughout the first quarter, but external pressures have somewhat weighed on the rate of expansion. Nevertheless, the sector is on course for a return to industrial production growth in 2021."