Canada April S&P Global manufacturing PMI 49.4 vs 49.8 prior

• Prior was 49.8
• New orders fell for a fourteenth
  successive month. Although modest, the decline was
  the steepest since January amid reports that high prices
  and soft market demand were weighing on sales.
• firms took on additional staff for a third month
  in a row
• Suppliers were also reported to have raised their prices, and
  this helped to explain another round of input cost inflation
  in April
• Full report

Commenting on the latest survey results, Paul Smith,
Economics Director at S&P Global Market Intelligence
said:

“April’s survey data revealed another relatively subdued
performance of Canada’s manufacturing sector, with
both output and new orders both falling since March
– and perhaps most disappointedly at slightly faster
rates. This led firms to again cut their buying activity,
and focus on the utilisation of existing inventory, which
several panellists noted remain too high.

“Inflation rates are also frustratingly sticky, with supply-
side delays noted as a factor pushing up input costs.
However, manufacturers’ pricing power is being limited
by market competition and subdued demand. Firms are
subsequently looking to the Bank of Canada to ease
interest rates soon given elevated borrowing costs
remain a key factor weighing on the outlook.”

USD/CAD is down 18 pips to 1.3759 today after a jump yesterday.

This article was written by Adam Button at www.forexlive.com.