Canadian factory activity sees strong growth despite supply shock

Toronto — Canada’s manufacturing activity grew in September at a pace that remained almost unchanged from last month’s strong levels, while the global supply shock helped lift inflation measurements to record highs, data. Showed on Friday.

The IHS Markit Canada Manufacturing Purchasing Managers’ Index (PMI) fell from 57.2 in August to seasonally adjusted 57.0 in September, but not far from the record pace of 58.5 in March.

It was the 15th consecutive month that PMI exceeded the 50 threshold for growth in this sector.

“Canada’s manufacturing sector recorded another healthy improvement in operating conditions in September, despite rising prevalence in major states,” Shreeya Patel, an economist at IHS Markit, said in a statement. I did. “

Canada continues to fight the fourth wave of delta-led coronavirus infections, but pandemic restrictions contribute to a global bottleneck.

“The shortage of materials has led to higher prices, delayed shipments, and then increased incomplete work,” Patel said. “Anecdotal evidence suggests that companies tried to clear the backlog, but a shortage of skilled workers hindered productivity.”

Cumulative business measurements were in line with the series’ highests since June 2018, rising from 55.6 in August to 56.6, while input and output price indicators rose to record highs.

Still, companies are optimistic about the growth outlook, with future production indices rising to their highest levels since May 2019.