Canada August S&P Global PMI 48.0 vs 49.6 prior

• Prior was 49.6
• Fourth month below 50
• Lowest since June 2020
• Fifth straight decline in new orders; lowest since March
• Full report

Commenting on the latest survey results, Paul Smith,
Economics Director at S&P Global Market Intelligence
said:

“Canada’s manufacturing sector continued to struggle
during August, with output and new orders falling at
solid rates. Firms responded by cutting purchasing and
utilising existing inventories, and signalled some worries
over the potential for demand weakness to linger in the
months ahead.

“Despite further signs of product supply stability and a
further drop in demand for inputs, inflationary pressures
picked up as firms throughout the supply chain continued
to push higher operating expenses onto their clients.

“Such persistence in inflation, albeit at much lower levels
than typically seen since the onset of the pandemic,
will naturally be a concern for policymakers. However,
such worries are somewhat offset by the news that
job shedding continued in August – and to the greatest
degree since June 2020. This latest sign of weakness in
the labour market may well therefore be enough for the
Bank of Canada to take a pause in its monetary policy
tightening cycle.”

A recession is going to come quick and hit hard in Canada. Home prices are falling now.