Latest news with #CanadaManufacturingPurchasingManagers'Index
Yahoo
02-06-2025
- Business
- Yahoo
Canada factory PMI rises in May but sector remains in contraction
By Fergal Smith TORONTO (Reuters) -Canadian manufacturing activity contracted for a fourth straight month in May as trade uncertainty led to firms shedding workers at the fastest pace since shortly after the start of the COVID-19 pandemic, data on Monday showed. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) edged up to 46.1 in May from 45.3 in April but was stuck below the 50 no-change level for the fourth straight month. A reading below 50 indicates contraction in the sector. 'With manufacturers continuing to be hit by tariffs and trade uncertainty, May saw the sector experience a further significant contraction," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. "The hard to predict nature of trade policies means the outlook for production remains extremely uncertain and given the recent scale of the downturn in the sector, job losses are mounting." The employment component fell to 44.9 from 47.6 in April, marking the lowest level since June 2020, while measures of output and new orders also remained in contraction. Canada sends about 75% of its exports to the United States, including steel, aluminum and autos which have been hit with hefty U.S. duties. Retaliatory tariffs have been imposed on some U.S. goods. 'Unsurprisingly, tariffs remain the primary source of price pressures, whilst also leading to an intensification of supply side delays," Smith said. The measure of input prices rose to 63.5 from 62.1 in April, leaving it just below the 31-month peak it touched in March, while the average lead times for the delivery of inputs lengthened for an 11th straight month. The deterioration in vendor performance was linked to port congestion and challenges at customs. The Future Output Index edged up to 50.9 from 50.4 in April, with some firms hopeful that government policies could help stabilize the macroeconomic environment, but was well below the survey's historical norm, S&P Global said. Canadian Prime Minister Mark Carney, whose Liberal Party retained power in an April election, has proposed sweeping changes to boost economic growth. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
01-05-2025
- Business
- Reuters
Canadian factory PMI hits near five-year low on tariff uncertainty
TORONTO, May 1 (Reuters) - Canadian manufacturing activity contracted in April at the steepest rate since shortly after the start of the COVID-19 pandemic as the uncertain nature of U.S. trade policy weighed on production and new orders. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) fell to 45.3 last month from 46.3 in March, its lowest level since May 2020. A reading below 50 indicates contraction in the sector. "The uncertainty regarding the future direction and implementation of tariffs was again especially damaging, with markets characterised by hesitancy and delayed decision making," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. "Reflective of the unpredictable environment firms are operating in, capital goods producers again reported especially steep falls in output and new work." The output component fell to 42.7 from 45.7 in March and the new orders measure was at 41.2, down from 42.3. Canada sends about 75% of its exports to the United States, including steel, aluminum and autos which have been hit with hefty U.S. duties. Retaliatory tariffs have been imposed on some U.S. goods. The Bank of Canada says that a long-lasting global trade war could trigger a significant recession in Canada and lead to inflation temporarily rising above 3%. The measure of input prices remained at an historically elevated level and average lead times for the delivery of inputs worsened for a 10th straight month. "Firms reported delays at ports and at customs points, which led to a further lengthening of supplier delivery times despite a noticeable reduction in demand for manufacturing inputs," Smith said. "Prices also rose steeply, especially for metals products." The Future Output Index rose to 50.4 from 45.1 in March as some firms pinned hopes on a more stable market environment in a year's time, but the measure still reflected a subdued level of confidence, S&P Global said.
Yahoo
01-05-2025
- Business
- Yahoo
Canadian factory PMI hits near five-year low on tariff uncertainty
By Fergal Smith TORONTO (Reuters) -Canadian manufacturing activity contracted in April at the steepest rate since shortly after the start of the COVID-19 pandemic as the uncertain nature of U.S. trade policy weighed on production and new orders. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) fell to 45.3 last month from 46.3 in March, its lowest level since May 2020. A reading below 50 indicates contraction in the sector. "The uncertainty regarding the future direction and implementation of tariffs was again especially damaging, with markets characterised by hesitancy and delayed decision making," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. "Reflective of the unpredictable environment firms are operating in, capital goods producers again reported especially steep falls in output and new work." The output component fell to 42.7 from 45.7 in March and the new orders measure was at 41.2, down from 42.3. Canada sends about 75% of its exports to the United States, including steel, aluminum and autos which have been hit with hefty U.S. duties. Retaliatory tariffs have been imposed on some U.S. goods. The Bank of Canada says that a long-lasting global trade war could trigger a significant recession in Canada and lead to inflation temporarily rising above 3%. The measure of input prices remained at an historically elevated level and average lead times for the delivery of inputs worsened for a 10th straight month. "Firms reported delays at ports and at customs points, which led to a further lengthening of supplier delivery times despite a noticeable reduction in demand for manufacturing inputs," Smith said. "Prices also rose steeply, especially for metals products." The Future Output Index rose to 50.4 from 45.1 in March as some firms pinned hopes on a more stable market environment in a year's time, but the measure still reflected a subdued level of confidence, S&P Global said. Sign in to access your portfolio
Yahoo
04-03-2025
- Business
- Yahoo
Canadian dollar hits one-month low as tariff deadline confirmed
By Fergal Smith TORONTO (Reuters) -The Canadian dollar weakened to a one-month low against its U.S. counterpart on Monday as U.S. President Donald Trump said that tariffs on Canada and Mexico will go into effect on Tuesday, denting hopes of another reprieve. The loonie was trading 0.5% lower at 1.4535 per U.S. dollar, or 68.80 U.S. cents, after touching its weakest intraday level since February 3 at 1.4541. "As recently as an hour ago, markets had assumed that tariffs would not be imposed, or that they would be dramatically watered down," Karl Schamotta, chief market strategist at Corpay, said in a note. Trump said that there was no chance for Mexico or Canada to prevent 25% tariffs from taking effect on Tuesday, sending financial markets reeling on the prospect of new economic barriers in North America. Implementation of the tariffs had previously been pushed back by a month. Canada sends about 75% of its exports to the United States, including oil. U.S. crude oil futures settled nearly 2% lower at $68.37 a barrel on reports OPEC+ will proceed with a planned oil output increase in April and on worries that a trade war could hurt the global economy. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) fell to 47.8 from 51.6 in January, its first move below the 50.0 no-change mark since August, as an uncertain trade outlook led to firms turning the most pessimistic since the start of the COVID-19 pandemic. Canadian bond yields fell across the curve as investors raised bets on a Bank of Canada interest rate cut this month. The 2-year was down 8 basis points at 2.493%, its lowest level since February 3. Sign in to access your portfolio
Reuters
03-03-2025
- Business
- Reuters
Canadian dollar pares gains ahead of US tariff decision
TORONTO, March 3 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Monday but gave back much of its earlier gains as domestic data showed manufacturing activity contracting for the first time in six months and investors awaited details on expected U.S. trade tariffs. The loonie was trading 0.2% higher at 1.4430 per U.S. dollar, or 69.30 U.S. cents, after moving in a range of 1.4370 to 1.4466. On Friday, the currency touched its weakest intraday level since February 4 at 1.4471. U.S. President Donald Trump will decide on Monday what levels of tariffs he will impose early on Tuesday on Canada and Mexico amid last-minute negotiations over border security and efforts to halt the inflow of fentanyl opioids, his commerce secretary said. The tariffs are scheduled to take effect at 12:01 a.m. EST (0501 GMT) on Tuesday. Canada sends about 75% of its exports to the United States. "With still a little bit of uncertainty in the air, traders are staying on the sidelines, keeping that U.S. dollar elevated until more details are provided of the exact specifics of the tariffs," said Darren Richardson, chief operating officer at Richardson International Currency Exchange Inc. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) fell to 47.8 from 51.6 in January, its first move below the 50.0 no-change mark since August, as an uncertain trade outlook led to firms turning the most pessimistic since the start of the COVID-19 pandemic. The price of oil, one of Canada's major exports, settled nearly 2% lower at $68.37 a barrel on reports OPEC+ will proceed with a planned oil output increase in April and on worries that a trade war could hurt the global economy. Canadian bond yields were mixed across the curve. The 10-year was down less than half a basis point at 2.896% after earlier touching its lowest since September 18 at 2.878%.
