Canadian Factory PMI Hits Highest Level Since June 2022
The S&P Global Canada Manufacturing PMI rose to 53.3 in April as firms stockpiled goods amid energy supply shocks. Rising costs may prompt interest rate hikes.
Canada manufacturing activity rose to 53.3 in April, the highest level since June 2022. The sector rebounded from a neutral 50.0 reading in March as geopolitical conflict triggered defensive inventory accumulation. For investors, the data signals that supply chain shocks and rising input costs may force the central bank to tighten policy sooner than expected.
### Geopolitical Conflict Drives Stockpiling The S&P GLOBAL INC Canada Manufacturing Purchasing Managers Index (PMI) showed growth driven by supply chain anxiety rather than organic demand. Paul Smith, economics director at S&P GLOBAL INC, attributed the 3.3-point jump to the war involving the United States, Israel, and Iran.
