Canadian Manufacturing Rises in March and Purchasing Accelerates

The pace of growth in the Canadian manufacturing sector firmed in March as output accelerated and new orders climbed, while purchasing activity rose at the fastest clip in almost seven years, data showed on Monday.

usdcad Canadian dollar graph, April 2, 2018

The Markit Canada Manufacturing Purchasing Managers’ index (PMI), a measure of manufacturing business conditions, increased to a seasonally adjusted 55.7 last month from 55.6 in February. A reading above 50 shows growth in the sector.

Output picked up to 55.0 from 54.8, reflecting strong demand which prompted some companies to try to boost production capacity at their plants.

New orders held steady at 55.6, which marked 18 months of sustained expansion. The quantity of purchases advanced to the highest since April 2011, at 57.0 from 56.2, driven by rising production and efforts to build safety stocks.

Another solid rise in backlogs of work pointed to sustained pressure on operating capacity and input cost inflation rose to its fastest for almost four years, due mainly to higher prices for steel and chemicals.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza