Canadian Measures Show Steady Growth

Supply chain disruptions and pricing pressures failed to have a material impact on Canadian producer prices and manufacturing activity in October.

The Raw Materials Price Index, a measure of price changes for raw materials purchased for further processing by manufacturers operating in Canada, increased 4.8% in October after falling 2.4% in September. On an annual basis, the index rose 38.4% in October following a revised 32.4% hike in September.

Likewise, Canadian manufacturing activity, an overview of production, was slightly lower than October’s pace but still registered a robust pace in November.

The IHS Markit Canada Manufacturing Index is compiled from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. In October, the Index dipped to a seasonally adjusted 57.2 in November from 57.7 in October. Any number above 50 indicates growth and the index has steadily been above 50 since July 2020.

The purchasing managers are questioned on five main parameters: production, new orders, supplier deliveries, inventory levels and employment environment. Optimism among manufacturers fell to the lowest since July, but was still above the long-term average.