Reuters
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TORONTO, Aug 3 (Reuters) - Canadian factory activity in July grew at the slowest pace in five months as supply chain pressures brought on by the coronavirus pandemic weighed, according to data released on Tuesday, but the rate of expansion remained firm.
The IHS Markit Canada Manufacturing Purchasing Managersâ Index (PMI) fell to a seasonally adjusted 56.2 in July from 56.5 in June. It was the lowest reading since February but still well above the 50 threshold which shows growth in the sector. Another robust improvement in operating conditions was seen across Canada s manufacturing sector in July, Shreeya Patel, an economist at IHS Markit, said in a statement. A further easing of virus-related restrictions and greater consumer confidence encouraged domestic demand.
Canadian manufacturing growth hits 5-month low amid supply constraints reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
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An expansion in new orders helped improve operating conditions across the Canadian manufacturing sector in February.
Improving demand and a rise in backlogs encouraged firms to add to workforces, while sustained growth in output led to an increase in purchasing activity.
The latest survey data continued to reveal supply chain pressures, with delivery times lengthening. Firms mentioned that restrictions, implemented to curb the spread of COVID-19, have led to material shortages and transportation delays. As a result, manufactures incurred higher costs through supplier surcharges.
The headline seasonally-adjusted IHS Markit Canada Manufacturing Purchasing Managers’ Index (PMI) registered 54.8 in February, up from 54.4 in January.