The S&P Global Canada Manufacturing PMI held steady at 49.3 in June 2024, unchanged from May, marking the fourteenth consecutive month of contraction in factory activity.

Output and new orders continued to decline, driven by a soft demand environment both domestically and internationally.

Concurrently, inventory levels rose modestly due to unexpectedly weak sales, and firms cutting purchasing activity significantly.

Employment dropped for the first time since January, while input costs increased at the slowest pace since January, with competitive pressures limiting the ability to pass on costs to clients, leading to only modest rises in output charges.

Looking ahead, confidence in future output fell to its lowest point of the year, reflecting concerns over high costs and market conditions, despite hopes that new products might stimulate demand.

Meanwhile, supply chain delays and rising input prices persisted, highlighting ongoing challenges in the manufacturing sector.

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