Markit Manufacturing PMI falls modestly to 56.5 in December from 57.5 expected

According to IHS Markit, Canadian manufacturing PMI it fell slightly to 56.5 in December from 57.2 in November. That was less than the expected decline to 57.5.

IHS Markit comments:

“Canadian manufacturers closed 2021 with a strong expansion in operating conditions as the sector continues to reap the benefits of strong domestic and international demand. Additionally, anticipation of higher customer orders encouraged companies to accumulate reserves at record rates. during December “.

“While the most recent data is generally positive, it is difficult to ignore the impacts of the pandemic in the sector. Over the past year, material shortages have been prominent, and while production has continued to expand, the latest rebound was in smoother for ten months. Additionally, another marked increase in delays suggests a persistent skills shortage. “

“The news of the Omicron variant coupled with sustained supply shortages has been a cause for concern among some Canadian manufacturers. The impacts of the new variant are still unknown, but policy makers remain committed to containing the virus.”

Market reaction

USD / CAD did not see any notable reaction to the latest PMI survey result.

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