Canada S&P/Global manufacturing PMI for April 50.2 versus 48.6 last month

• PMI manufacturing index for April 50.2 versus 48.6 last month
• Canadian manufacturing sector experiences little change in April
• Output and employment increase, but order books decline slightly
• Firms cautious about purchasing and stock management policies
• Confidence in future drops, input prices rise more rapidly
• Output prices increase at the weakest rate in nearly three years
• S&P Global Canada Manufacturing PMI records 50.2 in April, up from 48.6 in March
• Employment growth accelerates, reaching the highest level since June 2022
• Backlogs cut due to extra capacity, increased output, and modest decrease in new orders
• Export sales decline for nearly a year; elevated inflation and economic uncertainty affect decision-making
• Input cost inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term reaches the highest level of the year; transportation costs and supplier surcharges contribute
• Manufacturers cut purchasing activity for the ninth consecutive month
• Inventory reduction continues, but at a more modest rate than in March
• Output charges increase in April, but at the lowest rate recorded in just under three years

Paul Smith from S&P Global commented:

Although Canada’s manufacturing sector returned to growth in April, it did so only marginally with underlying data suggesting the recovery remained on shaky ground. Output and employment growth were sustained, but another drop in new orders is probably the most notable development. Clients are hesitant in their spending decisions, unsure of the direction of the economy at a time when prices remain high.

Cost inflation especially remains stubbornly high, with prices increasing to the strongest degree of the year so far. But manufacturers found themselves facing a tricky dilemma: although margins are under pressure from elevated costs, equally underwhelming demand is bearing down on their pricing power. No wonder then that firms continued to adopt cautious approaches to purchasing and stock management, and that confidence in the future took a knock in April.

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