- 45.6 vs 46.1 prior
- International sales, especially from the neighbouring US, were especially weak
- New export orders declined in June at one of the steepest rates in the survey history
- Production volumes were cut to the steepest degree in over five years in June amid a sharp decline in new work
- Some panellists are hopeful that trade uncertainty caused by tariffs will recede in the coming year
- Full report
This indicator is skipping along the bottom and there won't be any indications of improvement until/unless there is a US-Canada tariff deal.
Commenting on the latest survey results, Paul Smith, Economics Director at S&P Global Market Intelligence said:
"Canada’s manufacturing economy continued to struggle in the face of tariffs and the ongoing uncertainty related to future trade policies. A lack of new orders underpinned the latest downturn and helped to explain the steepest reduction in production since the height of the pandemic in the spring of 2020. International sales unsurprisingly were especially subdued, and, against this backdrop, firms chose to make further cuts to their employment and purchasing activity.
"Although sentiment improved on hopes of some stability in the year ahead, confidence in the outlook remains subdued and uncertain. And firms continued to face pressure on their operating margins as, despite easing since May, inflationary pressures were again evident. Tariffs again drove steep rises in prices and also exacerbated supply-side delays, which intensified during June."
