Commentaries /
December 2022 PMIs: Canadian manufacturers facing challenging operating conditions
December 2022 PMIs: Canadian manufacturers facing challenging operating conditions
Our Economist, Mahmoud Khairy, discusses December 2022's PMIs, which showed a subdued performance.
Mahmoud Khairy
Canada’s PMI closed the year with a subdued performance.
Mahmoud Khairy, Economist, Canadian Chamber of Commerce
High inflation and weakening demand continue to take a toll on the manufacturing sector, where firms are raising recession worries.
Key Takeaways
- In December, Canada’s Manufacturing Purchasing Managers’ Index (PMI) reading of 49.2 signaled a mild contraction, down slightly from 49.6 in November. Canada’s PMI has been below the 50 “no-growth” threshold for five straight months, which suggests weak conditions and negative growth for the sector to start 2023.
- The main factors dragging down the index are output, new orders and purchasing activity, reflecting subdued demand amid persistent uncertainty, as firms are raising fears of recession. On the plus side, employment surprisingly increased (albeit only slightly) reflecting difficulties in recruiting.
- Globally the manufacturing sector has been contracting over the last four months. Advanced economies are a bit worse than emerging markets, but the slowdown is broad-based across countries.
Summary Table
For more great #cdnecon content, visit our Business Data Lab.
Other Commentaries
September 2022 Consumer Price Index data: Food and services prices still rising, no progress on core inflation
Our Chief Economist, Stephen Tapp, looks at Canada’s headline inflation, which edged down for the third month in a row. There was no progress on “core” inflation, which held steady at 5%.
August 2022 Consumer Price Index data: Finally some good news on Canadian inflation.
Stephen Tapp, our Chief Economist, looks at Canada’s headline inflation for August, which fell for the second straight month. Core inflation and services measures have also finally started to slow.
July 2022 Consumer Price Index data: Canada’s inflation finally turns a corner with falling gas prices, but core pressures remain
Our Chief Economist, Stephen Tapp, looks at Canada’s headline inflation, which is finally showing signs of cooling off.