November 2022 Purchasing Managers’ Indices (PMIs)
Canadian manufacturers facing challenging operating conditions
The Purchasing Managers’ Index (PMI) offers an accurate leading indicator for business conditions that helps to anticipate changing economic trends. In today’s data, it shows challenging operating conditions for Canada’s manufacturing sector as higher input costs and slowing sales are taking a toll.Mahmoud Khairy, Economist, Canadian Chamber of Commerce
- In November, Canada’s Manufacturing Purchasing Managers’ Index (PMI) reading of 49.6 was a slight improvement compared with the reading of 48.8 in October. Nonetheless, Canada’s PMI remains below the 50 “no-growth” threshold for the fourth consecutive month, which is clearly not good news, and signals weaking conditions and negative growth for the sector to close out 2022.
- Production contracted for the fifth month in a row due to lower new orders in addition to contraction of foreign sales as global uncertainties continue.
- Canada is not alone; these PMI surveys suggest that globally the manufacturing sector has been contracting modestly over the last three months. Advanced economies are faring a bit worse than emerging markets, but the slowdown is broad-based across many countries.
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