Mfg. PMI Signals Resurgent Growth to Begin '18

Figures released by IHS Markit Canada Thursday revealed that Canadian manufacturers boasted a strong start to 2018, underpinned by faster rises in output volumes, new business intakes and staff recruitment.

The seasonally-adjusted IHS Markit Canada Manufacturing Purchasing Managers’ Index PMI picked up to 55.9 in January from 54.7 in December, to remain well above the 50.0 no-change threshold. Moreover, the latest PMI reading signaled the joint-strongest improvement in
business conditions since April 2011.

Markit noted that production volumes in this country have now increased for 15 months running, with the rate of expansion accelerating to its fastest since July 2017. A robust rise in manufacturing output was driven by greater demand from both domestic and export clients at
their start of the year.

Survey respondents commented on more favourable economic conditions and increased spending by U.S. clients in particular.

Markit also reports that manufacturers responded to pressures on capacity by increasing their staffing numbers at the steepest pace since last August. Input buying also strengthened in January, driven by improved demand and efforts to rebuild warehouse inventories. Markit concludes by saying increased stocks of purchases have now been recorded for three months running.