Canadian Manufacturing Activity Makes the Biggest Jump on Record in December
Manufacturing jumped higher in Canada in December
Skerdian Meta•Monday, January 4, 2021•1 min read
Manufacturing dived in recession during spring in Canada due to the coronavirus lock-downs. Although it came out for contraction in July and the manufacturing activity has been increasing since then. Today’s report showed the biggest jump since this survey started in 2010, as well as the highest level since then. USD/CAD is climbing higher today though and just reached 1.2730s where I just opened a sell forex signal.
Canadian December Manufacturing PMI
- December Markit manufacturing PMI 57.9 points vs 55.8 prior
- Biggest one-month jump on record
- Highest reading since the survey began in 2010
- November manufacturing PMI was 55.8 points
- Input and output prices were at 26-month highs
- New orders at three-month high
- Sixth consecutive month above 50.0 points
Comments from Markit:
“Latest data indicated the Canadian manufacturing sector concluded 2020 with a record month-on-month improvement in business conditions. The headline PMI figure reached 57.9, the highest since the survey began over a decade ago. New orders and output supported the latest rise with robust increases registered. As a result, firms continued hiring efforts, although capacity pressures emerged with incomplete work rising further in December. “Material shortages and strong inflationary pressures partly weighed on profit margins, although firms increased stocked inputs to limit the impact of future shortages.”Overall, the sector continues to recover from the second quarter downturn, although relatively high virus case numbers still pose a threat to the industry should restrictions tighten again.”
The headlines say it all here, these are very strong numbers and will help to underpin the rally in the Canadian dollar. although, the CAD is following crude Oil right now.
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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