Factory Output and New Orders Decline for Tenth Consecutive Month

  • Canadian manufacturers’ output and new orders decline in May
  • S&P Global Canada manufacturing PMI fell to 49.3 from 49.4
  • Factory production declined for ten months in a row
  • Output costs rose at the slowest pace in a year
  • Bank of Canada expected to deliver a policy-rate decision with rate cut

The Canadian manufacturing sector continued its downturn in May, with output and new orders declining for the tenth consecutive month. The S&P Global Canada manufacturing purchasing managers index fell to 49.3 from 49.4 in April, indicating a prolonged contraction. Factory production has been on the decline for ten months straight, with May’s drop being the steepest this year. New orders saw their sharpest decline in four months. The slow rise in output costs reflects competitive pressures limiting manufacturers’ ability to pass them onto clients. Economists expect the Bank of Canada to deliver a policy-rate decision with a rate cut to stimulate the economy, as recent data shows manufacturing output fell 3.2% year-over-year and 0.6% nonannualized in Q1.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the decline in Canadian manufacturing output and new orders, citing relevant sources such as S&P Global Market Intelligence and Statistics Canada. It also discusses the reasons behind the decline, including market uncertainty and competitive pressures. The article is not sensational or opinionated, and presents facts without any personal perspective.
Noise Level: 4
Noise Justification: The article provides relevant information about the decline in Canadian manufacturing output and new orders, but it could benefit from more analysis or context on the broader economic implications of this trend and potential solutions to address the issue.
Public Companies: S&P Global (SPGI)
Key People: Paul Smith (Economics Director at S&P Global Market Intelligence)

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Financial Relevance: Yes
Financial Markets Impacted: Canadian manufacturing sector
Financial Rating Justification: The article discusses the decline in Canadian manufacturers’ output and new orders, which can impact the overall economy and financial markets through stock prices of related companies. It also mentions the Bank of Canada’s policy-rate decision, which affects interest rates and investments.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article, as it discusses a financial crisis related to the Canadian manufacturing sector’s ongoing downturn and economic challenges.

Reported publicly: www.marketwatch.com