Canadian manufacturing activity expanded in February at the quickest pace in a year, data showed on Monday, which could provide some reassurance to the Bank of Canada on the outlook for the economy ahead of an interest rate decision this week.
The IHS Markit Canada Manufacturing Purchasing Managers’ index (PMI), a measure of manufacturing business conditions, rose to a seasonally adjusted 51.8 in February, its highest since February 2019, from 50.6 in January. It was the sixth straight month that the index was above the 50 threshold, showing expansion in the sector.
Markit went on to say the rise in the headline PMI mostly reflected faster rates of output and new order growth, alongside a modest rebound
in employment numbers during the latest survey period.
Production volumes expanded at the strongest pace since last November, despite a small number of reports that supply chain delays had disrupted business operations.
