Finance
S&P Global Says Canada Manufacturing PMI Inflation for September Is Highest Since Mid
S&P Global's Canada Manufacturing PMI for September reveals a stagflationary mix of rising input costs and softening demand.
Key takeaways
- Canada's manufacturing input cost inflation in September reached its highest level since July 2022.
- New orders fell for the first time since March, with export orders declining for a fourth straight month.
- Tariffs and US trade friction are the main culprits behind the decline in demand.
- Input prices rose at the fastest pace in over four years due to the Iran war, energy prices, shortages, and shipping delays.
- Longer delivery times are inverted in the PMI calculation, meaning supply disruptions artificially flatter the headline index.
S&P Global's Canada Manufacturing PMI for September reveals a stagflationary mix of rising input costs and softening demand. While the headline index indicates growth, details show a 1.5-point drop driven by falling new orders and export declines linked to tariffs and US trade friction. Input cost inflation reached its highest level since July 2022, driven by the Iran war, energy prices, and shipping delays, presenting a policy dilemma for the Bank of Canada.
The stagflationary mix of rising pipeline inflation and softening activity complicates Bank of Canada rate decisions.
By the numbers
- 53.0
- Prior manufacturing PMI reading
- -1.5
- Drop in the manufacturing PMI
How it unfolded
- Input cost inflation was last this high
- Supplier delivery times were last this long
- Business confidence was last this low
- Manufacturing PMI inflation hits highest since mid-2022
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Common questions
- What happened with Canada Manufacturing PMI?
- Canada's manufacturing input cost inflation in September reached its highest level since July 2022.
- Where can I read the original report?
- Read the full report at Google News.
