Canada Manufacturing PMI Hits 53.5, Highest Since June 2022 as Input Costs Jump to 68.3
Updated
Updated · Finimize · Aug 5
Canada Manufacturing PMI Hits 53.5, Highest Since June 2022 as Input Costs Jump to 68.3
3 articles · Updated · Finimize · Aug 5
Summary
Canada’s manufacturing PMI rose to 53.5 in July from 53.0, the strongest reading since June 2022 and a fourth straight month of expansion.
Domestic demand drove the gain: output and new orders improved, and factories added staff to handle heavier workloads.
Input prices climbed to 68.3 — the highest since July 2022 — as US tariffs on nearly $20 billion of Canadian goods and higher energy costs lifted supply-chain expenses.
That cost pressure and softer international demand cooled sentiment, pushing the future output index down to 55.4, its weakest level since March.
For markets, the inflation signal may matter more than the growth pickup, because persistent factory cost pressures could slow Bank of Canada rate cuts and keep short-term bond yields sensitive.