IHS Markit Canada Manufacturing PMI - Seite 2

Meanwhile, manufacturers pointed to the sharpest drop in purchasing activity since December 2015. Weaker demand for materials and lower steel prices led to subdued cost pressures, with input price inflation holding close to the 52-month low seen in May. Where a rise in input prices was reported, manufacturers often cited greater transportation bills and the pass-through of higher trade tariffs on China by US suppliers.

At the same time, intense competitive pressures contributed to the slowest rise in prices charged by Canadian manufacturers in the current 32-month inflation sequence.

COMMENT

Commenting on the PMI data, Tim Moore, Economics Associate Director at IHS Markit said:

"Manufacturing business conditions remained on a downward path during June, according to the latest PMI data. Output fell to the largest extent for three-and-a-half years as a lack of new work to replace completed orders continued to act as a brake on production schedules. In fact, unfinished work decreased at the sharpest rate since the survey began in 2010. "The latest survey results provide a clear sign that US-China trade frictions are holding back the Canadian manufacturing sector. New orders have now decreased for four months in a row, with survey respondents widely commenting on subdued export demand and weaker global trade volumes so far this year. Moreover, manufacturers indicated that their business optimism dropped sharply in June and was among the weakest seen since the start of 2016."

Methodology

The IHS Markit Canada Manufacturing PMI is compiled by IHS Markit from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. The panel is stratified by detailed sector and company workforce size, based on contributions to GDP. Survey responses are collected in the second half of each month and indicate the direction of change compared to the previous month. A diffusion index is calculated for each survey variable. The index is the sum of the percentage of ‘higher’ responses and half the percentage of ‘unchanged’ responses. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The indices are then seasonally adjusted. The headline figure is the Purchasing Managers’ Index (PMI). The PMI is a weighted average of the following five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%) and Stocks of Purchases (10%). For the PMI calculation the Suppliers’ Delivery Times Index is inverted so that it moves in a comparable direction to the other indices. Underlying survey data are not revised after publication, but seasonal adjustment factors may be revised from time to time as appropriate which will affect the seasonally adjusted data series. June 2019 data were collected 12-24 June 2019. For further information on the PMI survey methodology, please contact [e-mail].