Highlights of the March PMI
- Prior was 58.5 (was highest in 10-year survey history)
- Capacity pressures remained evident with backlogs rising markedly
- Rate of output price inflation the sharpest in the ten-and-a-half year history of the survey.
- New orders rose sharply, albeit at a slightly softer pace than that seen in the previous survey period
- The rate of job creation softened from that in the previous survey period but was still historically strong
Commenting on the latest survey results, Shreeya Patel, Economist at IHS Markit, said:
"Latest PMI data revealed a confident start to Q2 with a tenth successive monthly expansion recorded in the Canadian manufacturing sector. Despite moderating form March's near-survey peaks, output and new order growth were robust, while rising backlogs supported additions to headcounts in April. Firms also added to their stockpiles, suggesting greater production in the coming months.
"Although data highlighted a positive overall demand picture, it continued to reveal strong concerns over future supply. Anecdotal evidence continued to link COVID-19 to severe delivery delays and the limited availability of raw materials. As a result, firms rushed to add to their pre-production stock levels, often paying highly inflated prices for inputs.
"Meanwhile, sentiment posted below its long-run trend level with another series of tightening restrictions taking its toll on expectations. Firms expressed their hopes over the vaccination efforts, but interruptions to the global supply of vaccinations have raised alarms."
