Canada’s Manufacturing PMI Drops in January

The headline seasonally adjusted IHS Markit Canada Manufacturing Purchasing Managers’ Index (PMI) declined in January to 54.4 from 57.9 in December, data showed on Monday.

However, Canadian manufacturing businesses witnessed a solid expansion in business conditions, especially in the goods-producing sector.

Production volumes increased solidly in January, extending the current run of growth to seven-months, according to IHS Markit.

On the price front, sharp cost pressures continued to mount with higher raw material costs often mentioned as the main driver of inflation.