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1 Apr 2020
Canada: PMI tipped firmly below the break-even level – RBC
The Canada Markit manufacturing PMI index fell to at least a 9 1/2 year low in March (46.1), Nathan Janzen, a Senior Economist at the Royal bank of canada recaps the data.
Key quotes
“The Canada Markit manufacturing PMI fell to at least a 9 1/2 year low in March, and although arguably better than feared at 46.1, it still tipped firmly below the break-even 50 level indicating a decline in activity.”
“The US ISM manufacturing index also out this morning was better than feared, but will certainly deteriorate further. And that has obvious implications for Canada given tight cross-border industrial integration.”
“The service-sector pullback has almost certainly been far more pronounced than for manufacturing.”