Canada Markit manufacturing for November 2021
- prior month 57.7
- Growth has been seen in each month since July 2020, with the latest expansion among the strongest in over 11 years of data collection.
- Manufacturers recorded the fastest rise in production levels for three months, which was linked to increased workloads. The overall rate of expansion was strong, and in line with the average seen for 2021 so far.
- . Anecdotal evidence suggested that transportation delays, material scarcity, port congestion and virus-related restrictions had led to worsening vendor performance
- Robust demand for raw materials, along with higher transportation, fuel and energy costs led to a marked rate of input cost inflation.
- Manufacturers were upbeat about their growth prospects for the next 12 months. The degree of positivity moderated to the lowest since July, but was still above the long-run series average
Shreeya Patel, Economist at IHS Markit commented
"The penultimate month of 2021 continued to indicate strong growth in Canada's manufacturing sector. Operating conditions have improved in each of the last 17 months, with the latest expansion among the strongest in the series history. Production volumes increased strongly while sustained increases in domestic and international demand contributed to the sector's strong performance. Firms meanwhile continue to adopt advance buying strategies which have served them well so far. That said, companies struggled once again with shortages, resulting in a record accumulation of incomplete work. "Overall, Canada's manufacturing sector performed well in November. Growth has certainly been hindered by transportation bottlenecks, material scarcity and intense cost pressures, but firms remain confident that such issues will subside in 2022."
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