TORONTO, Feb 1 (Reuters) - Canadian manufacturing
activity expanded in January for the first time in six months as
an uptick in domestic demand led to firms increasing production
and inflation pressures showed signs of easing, data showed on
Wednesday.
The S&P Global Canada Manufacturing Purchasing Managers'
Index (PMI) rose to a seasonally adjusted 51.0 in January from
49.2 in December. It was the first month since July that the
index was above the 50 threshold that marks expansion in the
sector.
"The Canadian manufacturing economy began 2023 on a firmer
footing than at the end of last year, registering some welcome,
albeit modest, growth in both output and new orders," Paul
Smith, economics director at S&P Global Market Intelligence,
said in a statement.
The output index rose to 51.0, its highest level since May,
from 47.1 in December, while the new orders measure was at 50.3,
up from 47.0. Demand was driven by the domestic market as new
export orders declined for an eighth straight month.
The input prices index fell to its lowest level since August
2020 at 58.6, down from 61.5 in December, and the measure of
output prices dipped.
"Also welcome is the reduction in inflationary pressures and
gives additional hope of firmer sector recovery in the months
ahead," Smith said. "However, we must remember that growth is
modest, and fears of the negative impacts on output of recession
persist."
The future output index slipped to its lowest since October,
while purchasing activity was in contraction for a sixth
straight month as firms reported a preference for utilizing
existing stocks.
(Reporting by Fergal Smith; Editing by Chizu Nomiyama)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.