Toronto, Ontario — Canada’s manufacturing sector is facing its longest slowdown in seven years, according to recent data by S&P Global Canada.
This data indicates that Canada’s Purchasing Managers’ Index (PMI) fell to a seasonally adjusted 49.2 in December from 49.6 in November, the fifth month in a row where the index remained below the 50 threshold.
This follows a four-month low of 47.1 from 29.0 in November.
“The Canadian manufacturing economy turned in another relatively subdued performance as 2022 closed,” wrote Paul Smith, economics director at S&P Global Market Intelligence in a statement.
Smith cites this as a result of Canadian companies continuing to be affected by persisting supply constraints and price stickiness.
“Firms reported again that weak market demand reflected both ongoing uncertainty and the negative impact of high inflation.”