Canadian Factory PMI Hits Six-Month Low on Trade Frictions

Canada's manufacturing sector grew at its slowest pace in six months in September due to trade frictions and rising energy costs. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) fell to 51.5 from 53.0 in August, marking the lowest level since March.

A reading above 50 indicates expansion in the sector. According to Paul Smith, economics director at S&P Global Market Intelligence, 'Canada's manufacturing economy showed a degree of resilience in the face of several headwinds during September.'

The output index dipped to 50.8 from 52.8 in August, while the new orders measure slipped below the 50 threshold for the first time since March.

'These issues didn't just cause present difficulties, such as around stock and production management, but also added to a pervading uncertainty amongst clients and manufacturers alike especially given the seemingly intractable nature of trade tensions with the US and the ongoing conflict in the Middle East,' Smith said.