Canada Manufacturing PMI at 6-Year High
Canada Manufacturing PMI
According to a report by Markit Economics, the Canada Manufacturing PMI (Purchasing Managers’ Index) stood at 55.9 in April 2017 compared to 55.5 in March. It met the market estimate and was the strongest figure since April 2011.
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Stronger growth in April indicated strong improvement in Canada’s (EWC) business activity, which was mainly due to the following:
- New orders rose at a faster pace in April 2017. Production volume also continued its expansion.
- Export orders increased at a higher rate during the month. Domestic demand, which came from the energy sector, showed stronger growth.
- Manufacturers indicated an improvement in employment growth in April. Labor productivity also improved, and raw material prices rose.
Impact on the economy
In this current global (ACWI) (VTI) (VEU) environment, the markets are facing uncertainties in anticipation of changes in the US (QQQ) (SPX-INDEX) (IWM) trade policy and political uncertainty in the Eurozone. Any change in the US trade policy could impact Canada’s business environment. But overseas demand is showing improvement, which has improved the Canada Manufacturing PMI.
The manufacturing PMI in April was driven by improvement in domestic demand and export orders, which indicates that confidence in the business climate is improving.
In the next part of this series, we’ll look at the performance of the Japan (EWJ) Manufacturing PMI for April 2017.