Canadian factory activity grows at record pace despite surging costs
TORONTO (Reuters) – Canadian manufacturing exercise expanded at a file tempo in March as restrictions to comprise the coronavirus pandemic eased and demand situations improved, though the Russia-Ukraine struggle contributed to mounting price pressures, knowledge confirmed on Friday.
The S&P World Canada Manufacturing Buying Managers’ Index (PMI) rose to a seasonally adjusted 58.9 in March from 56.6 in February, posting its highest stage within the 11-year historical past of the survey. A studying above 50 exhibits development within the sector.
“Canada’s manufacturing sector once more loved a bustling month of buying and selling in March,” Shreeya Patel, an economist at S&P World mentioned in a press release. “Key to development had been strong uplifts in output, new orders and purchases.”
The output index rose to its highest stage since March final yr and the measure of latest orders climbed as effectively.
Larger gross sales had been attributed by producers partially to the relief of pandemic restrictions, S&P World mentioned. Ontario, Canada’s most populous province, dropped its masks mandate in most areas final week.
Nonetheless, considerations over enter shortages and supply delays led to file ranges of stockpiling, whereas the enter value index jumped to a survey-record excessive of 78.6 from 70.1.
“With demand displaying no indicators of letting up and the knock-on results of the struggle in Ukraine, we are able to count on to see costs rising at elevated charges for not less than the length of the yr,” Patel mentioned.
Western sanctions imposed on Russia over its invasion of Ukraine have disrupted oil provides, driving costs larger. Moscow calls its Ukraine motion a “particular army operation”.
(Reporting by Fergal Smith)
