Canada’s manufacturing sector expanded further in June as production and employment rose, according to the S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI). The PMI edged up to 53.0 last month from 52.9 in May, marking the sixth straight month that the index was at or above the 50 threshold, indicating expansion in the sector.
Supply Disruptions and Cost Inflation
However, the sector still faces challenges, including intensifying supply shortages that helped lift cost inflation to a near four-year high. Suppliers’ delivery times lengthened to the greatest degree since September 2022, due to the war in the Middle East disrupting shipping routes. High oil prices and increased transportation costs, as well as U.S. tariffs, contributed to increased input costs.
The output index rose to 52.1 from 52.0 in May, and the measure of employment was at 51.9, its highest level since October 2024, as firms added staff to cope with increased workloads. Despite these positive signs, growth was still partly driven by stockpiling as firms and their clients continued to face substantial supply-side disruption.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
