The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 49.7 in February from 48.3 in January, indicating a slight improvement in Canadian manufacturing activity. This increase suggests that the manufacturing sector in Canada is moving closer to stabilizing, with softer declines in output and new orders. The rise in PMI also coincided with a rise in employment, indicating increased job opportunities for workers in the manufacturing industry.

Manufacturing Downturn Slows in Canada

According to the latest survey results, Canadian manufacturing activity experienced a slower downturn in February. Both output and new orders saw only slight declines, reflecting a positive shift in the industry. Additionally, the rise in employment is a promising sign that firms in the sector are retaining or adding workers. These findings highlight the potential for the manufacturing sector in Canada to stabilize and potentially rebound in the near future.

Commenting on the latest survey results, Paul Smith, Economics Director at S&P Global Market Intelligence, said, “The data provides some hope that we may soon see the Canadian manufacturing sector return to growth. The slower declines in output and new orders, coupled with the rise in employment, indicate a potential turnaround.”

Summary:

• The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) rose to 49.7 in February from 48.3 in January.
• This increase suggests a slight improvement in Canadian manufacturing activity and a move closer to stabilizing the sector.
• Output and new orders experienced only slight declines, indicating a slower downturn in February.
• Employment in the manufacturing sector rose, providing potential job opportunities for workers.
• Paul Smith, Economics Director at S&P Global Market Intelligence, expressed optimism about the potential turnaround in the manufacturing sector.