Canadian factory activity contracts in August amid stronger declines in output, new orders

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Canadian factory activity contracts in August amid stronger declines in output, new orders
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The August numbers mark the first time Canadian manufacturing activity has contracted since the early stages of the COVID-19 pandemic

Canadian manufacturing activity contracted in August for the first time since the early stages of the COVID-19 pandemic, amid stronger declines in output and new orders, and the first drop in employment in two years, data showed on Thursday.

“Growing uncertainty, interest rate hikes, high inflation and persistent supply-chain pressures are no doubt the drivers of the latest drop.” The employment index dipped to 48.8, the lowest level since June 2020. At the same time, input cost inflation eased to a 19-month low.

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