Canada’s manufacturing sector experienced its sharpest contraction since the early months of the COVID-19 pandemic in December, with the S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) dropping to 45.4 from 47.7 in November.
This marks the lowest level since May 2020, reflecting a challenging end to 2023 for the manufacturing economy. The prolonged stretch below the 50-threshold (indicating contraction) since May is the longest in data records dating back to October 2010. Accelerated declines in production and new orders were reported, signaling subdued demand for manufactured goods.