- Prior was 57.2
- Fastest uptick in pre-production orders since the survey began 11 years ago
- Production outlook at 5-month low
- Material shortages restraining production
- Panelists mentioned that whilst firms were able to source skilled labour it was not sufficient to tame a rise in backlogs
This is not generally a market-moving report but it points to a healthy Canadian manufacturing sector, which isn't a surprise. The question is if consumer demand will hold up as prices move higher and deliveries are delayed.
Commenting on the latest survey results, Shreeya Patel, Economist at IHS Markit, said:
"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."
