Canada’s manufacturing activity slowed in May, extending the slump to a record 13 consecutive months of contraction.
The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) declined to a seasonally adjusted 49.3 in May from 49.4 in April. A reading below 50 signifies a contraction.
May’s reading of manufacturing activity was the lowest level since January of this year and marked the 13th consecutive month that the sector contracted.
That’s the longest period of contraction since the data started being collected in 2010.
Canada’s manufacturing sector is struggling as output and new orders decrease at a rapid clip and firms reduce their buying activity.
On the upside, May’s reading showed that inflation is starting to ease in the manufacturing sector.
The input price index fell to 53.8 from 54.7 in April and output prices came in at 50.2, the lowest level in four years.
The Bank of Canada is scheduled to announce its next decision on interest rates tomorrow (June 5).
