- Prior was 54.6
- Renewed declines in output and new orders while employment growth softened
- New orders fell moderately, which ended two years of new order growth
- The rate of inflation was the weakest since February, and below the average seen for 2022 so far
- manufacturers in Canada remained optimistic about their output levels in the year ahead
- Both input and output price inflation moderate to five-month lows
- Export sales were a particular drag on the sector in July
Commenting on the latest survey results, Shreeya Patel, Economist at S&P Global Market Intelligence said:
“Latest PMI data revealed another slowdown in operating conditions in Canada’s manufacturing sector with the PMI at its lowest point for just over two years. Behind the latest moderation were contractions in both output and new orders which fell for the first time since the pandemic began in the first half of 2020.
“Firms continue to face sharply rising costs, which have been exacerbated by the war in Ukraine and lockdowns in China. Policymakers have reaffirmed their stance on tackling inflation by raising interest rates by a full percentage point last month.
“Companies in Canada will hope price pressures continue to ease and demand from both international and domestic markets improves. In the meantime, firms remain cautiously optimistic about their 12-month outlook for output.”
Overall, there’s a slowdown in manufacturing coming but everyone already knows that so the question is how bad will it be? Autos will keep Canada stronger for longer but falling orders and all the recession talk indicate that manufacturing is going to be a big headwind for global economies in 2023.
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