This is 15 straight months of contraction.
- Prior was 49.3
- Canadian manufacturing sector deteriorates at fastest pace in 7 months
- Business confidence hits lowest level since May 2020
- Input cost inflation remains solid but below trend
- Supply chain delays worsen, especially for sea freight
- New orders fell sharply, with exports down the most since May 2020
Commenting on the latest survey results, Paul Smith,
Economics Director at S&P Global Market Intelligence
said:
“The latest manufacturing data disappointed in July,
with accelerated declines in both output and new
orders both recorded as we enter the second half of
2024. Panellists were subsequently circumspect in
their purchasing and input inventory management by
adjusting these both downwards to reflect the weaker
and uncertain operating environment.
“Although employment growth was sustained, this was
on the back of what looks like dwindling hopes for future
output growth. Confidence about next year’s output may
remain positive, but sentiment is at its lowest level since
May 2020. It seems that the Bank of Canada’s recently
announced second cut in interest rates could not have
come soon enough as firms look to lower borrowing
costs and reduced inflation to help reinvigorate demand
in the coming months.”
This article was written by Adam Button at www.forexlive.com.
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