- Canada’s global manufacturing PMI fell into contraction territory below 50 in August.
- USD/CAD is holding on to daily gains above 1.3150 after the data.
Business activity in Canada’s manufacturing sector contracted in August with the S&P Global Manufacturing PMI falling to 48.7 from 52.5 in July. This reading disappointed market expectations of 53.6 by a wide margin.
Commenting on the data, “the latest PMI data highlighted heightened concerns about Canada’s manufacturing sector midway through the third quarter as high inflation and concerns about the long-term outlook weighed heavily on demand,” said Shreeya Patel, an economist at S&P Global Market Intelligence. “Both production and new orders fell at a faster pace, while employment levels fell for the first time since the start of the pandemic in more than two years.”
market reaction
The pair USD/CAD rose slightly on initial reaction to disappointing data and was last seen losing 0.3% on the day at 1.3167.
Source: Fx Street
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