January PMI: slowest production growth in two years
- February 1, 2019
The IHS Markit Canada manufacturing Purchasing Managers’ Index (PMI) has recorded the slowest growth in manufacturing production since December 2016.
Canadian manufacturers reported a loss of momentum at the start of 2019, with output and new business growth falling from the peaks seen last summer. Export sales remained particularly subdued in January, with a marginal fall in new work from overseas.
However, a more positive note was struck by a strong pace of job creation and slower input cost inflation during the latest survey period.
The headline seasonally adjusted PMI declined from 53.6 in December to 53.0 in January. Although this is still above the crucial 50.0 no-change threshold, the latest reading pointed to the weakest improvement in overall business conditions since December 2016.
The latest survey indicated the slowest rise in production volumes for 25 months during January. Anecdotal evidence suggested that a general slowdown in client demand held back output growth at the start of 2019.
Data for January showed only a moderate rise in new work received by manufacturing companies. The rate of new business growth eased for the second month running and was the weakest since October 2016. And new export orders fell in January, albeit only slightly. Survey respondents noted that ongoing global trade frictions had dampened business confidence and contributed to more cautious spending by clients.
More data available here.