Canadian manufacturers reported an overall improvement in business conditions during December, says the latest report from IHS Markit Canada.
The market information firm’s monthly survey indicated sharp expansions in new orders and output underpinned the latest growth.
Sustained increases in manufacturing workloads contributed to capacity pressures and another round of job creation. There were also widespread reports that supply chain pressures mounted in December, which were often linked to the restrictions imposed to curb the surge in coronavirus disease 2019 (COVID-19) cases.
Canadian manufacturers remained optimistic that their output levels in 2021 will improve. On the price front, material shortages and higher transportation costs added to inflationary pressures. Both input and output price inflation hit 26-month highs in December.
The headline seasonally adjusted IHS Markit Canada Manufacturing Purchasing Managers’ Index (PMI) registered 57.9 in December, up from 55.8 in November, signalling the strongest overall improvement in