While U.S. manufacturing activity slowed in October, Canadian data showed growth.
In the U.S. supply chain issues impacted all industries, as the Institute for Supply Management’s index of national factory activity slipped to a reading of 60.8 last month from 61.1 in September. Deliveries to factories and measure of new orders dropped to a 16-month low.
The economy is still growing, as any number over 50 indicates expansion, however, the number slowed to its slowest rate in 2021 to date in 2021.
As the global economy struggles with shortages across industries, global supply chains remain clogged. One of the hardest hit sectors was the motor vehicle industry, which saw one of the worst quarters since early 2009. Economists and businesses expect supply chains could remain tight through 2022.
Meanwhile, Canadian manufacturing activity grew in October at the fastest pace in seven months as an increase in new orders and hiring offset mounting supply chain pressures.
The IHS Markit Canada Manufacturing PMI registered its highest reading since March, at 57.7 in October of 2021, from 57 in the prior month. Growth in new orders due to both foreign and domestic demand drove an improvement in factory activity conditions. Additional support came from production, employment and purchasing activity.
Supply and transportation bottlenecks persisted, causing stocks of purchases at the fastest rate in the survey to date.
