Canada's Manufacturing PMI Hits Four-Month Low as Inflation Reaches New High

Canada's September manufacturing PMI has hit its weakest level since March this year, according to S&P Global. The index fell to a reading of 46.9, down from August's 48.3.

This is a significant drop, as a reading above 50 indicates expansion in the sector, while below 50 signals contraction. The September figure suggests that Canadian manufacturers are still feeling the effects of global economic uncertainty and supply chain disruptions.

Additionally, inflation in Canada has reached its highest level since April 2018, with prices increasing at an annual rate of 4.7%. This is a major concern for policymakers, who will be closely monitoring price movements ahead of the October Bank of Canada interest rate decision.