Canada’s manufacturing sector showed signs of nearing stability in August, although it remained contracted for the second consecutive month. The S&P Global Canada Manufacturing PMI increased to 49.5 in August 2024, from 47.8 in July, providing a cautious sense of optimism for the sector. The data update was released on September 3, 2024.
Despite the uptick, the figure still sits below the 50.0 threshold that demarcates expansion from contraction, indicating the sector is still facing challenges. However, the increase suggests that conditions may be improving, and the manufacturing sector could be moving towards stabilization.
Analysts suggest the slight improvement may be driven by easing supply chain tensions and a modest uptick in domestic demand. As the sector continues to grapple with economic uncertainties, all eyes will be on next month’s PMI and whether it can break through the critical 50.0 barrier to solidify a path to recovery.
