Canada manufacturing PMI expanded to 55.5 in July from 54.7 in June, IHS Markit statement revealed. As a result, the reading hit a four-month high in the same period and suggested the strongest improvement in overall business conditions after April.
Canada manufacturing PMI gained due to an accelerated improvement in every business condition in July. The recent survey indicated the rapid rate of growth in production after March fueled by enhanced new order books and supported through a strong increase in employment numbers.
At the same time, the release pointed out moderation in input cost inflation to reach a nine-month low.
Manufacturers attributed it to a strong exchange rate against the American currency. Also, demand continued to strengthen in respect of raw materials as the recent increase in purchasing activity was the quickest one after December 2014.
The press statement added, “July data indicated the steepest rise in total new work for three months. There were signs that the accelerated pace of new order growth was driven by domestic spending, as the latest increase in export sales was weaker than in June.”
Significantly, manufacturing firms responded to increasing workloads by adding staff in July. After October last year, employment number has rebounded with the help of improved business confidence.