- 45.6 vs 46.1 prior
- International sales, especially from the neighbouring
US, were especially weak - New
export orders declined in June at one of the steepest rates in
the survey history - Production volumes were cut to the steepest degree in over
five years in June amid a sharp decline in new work - Some panellists are hopeful that trade uncertainty caused
by tariffs will recede in the coming year - Full report
This indicator is skipping along the bottom and there won’t be any indications of improvement until/unless there is a US-Canada tariff deal.
Commenting on the latest survey results, Paul Smith,
Economics Director at S&P Global Market Intelligence
said:
“Canada’s manufacturing economy continued
to struggle in the face of tariffs and the ongoing
uncertainty related to future trade policies. A lack
of new orders underpinned the latest downturn and
helped to explain the steepest reduction in production
since the height of the pandemic in the spring of 2020.
International sales unsurprisingly were especially
subdued, and, against this backdrop, firms chose to
make further cuts to their employment and purchasing
activity.
“Although sentiment improved on hopes of some
stability in the year ahead, confidence in the outlook
remains subdued and uncertain. And firms continued
to face pressure on their operating margins as, despite
easing since May, inflationary pressures were again
evident. Tariffs again drove steep rises in prices and
also exacerbated supply-side delays, which intensified
during June.”
This article was written by Adam Button at www.forexlive.com.