Canada manufacturing PMI from Markit
- Prior was 57.0
- 16 consecutive months above 50
- "Central to growth was a sharp upsurge in new orders amid improvements in domestic demand"
- Exports best since May 2018
- Lead times hit survey high
- Prices remain extremely elevated but were below Sept's record. "Material shortages, especially for metals, packaging, and electronic components, drove the uptick"
- Business confidence at highest levels since April 2018
This is why the BOC's job is tough right now. The GDP numbers last week were surprisingly soft but surveys continue to show both growth and inflation.
Commenting on the latest survey results, Shreeya Patel, Economist at IHS Markit, said:
"Latest PMI data revealed that Canada's manufacturing sector performed strongly, continuing 2021's run of robust growth. New orders rose at a quicker pace in October, and firms continued hiring activity to meet their existing orders. Whilst domestic demand conditions were favourable, firms across the regions also recorded a healthy upturn in international demand as restrictions continue to ease across the globe.
"However, concerns surrounding supply were reinforced with severe delivery delays and near-record increases in costs again evident in October. Firms responded by raising their stock levels at the quickest rate on record, which should sustain solid output levels over the next few months.
"Nevertheless, Canada's manufacturing sector has performed well over the course of the year, which was reflected in sentiment. Anecdotal evidence suggests firms are gearing up for another busy 12 months of trading."
