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2025-08-01 21:36:20
[Why has Canada's manufacturing sector continued to shrink for consecutive months as trade difficulties intensify?] ⑴ Canada's manufacturing PMI rose to 46.1 in July, but remained below the 50 mark, marking the sixth consecutive month of expansion and contraction. ⑵ This indicates continued contraction in the country's manufacturing sector, primarily impacted by Trump's tariff rhetoric and, in particular, trade difficulties with the United States. ⑶ Paul Smith, Director of Economics at S&P Global Market Intelligence, noted that output, new orders, and purchasing activity all declined at a significant rate. ⑷ Canada faced significant challenges in trade with the United States, particularly due to reduced demand and sales from US customers. ⑸ Although the new orders and new export orders indices have rebounded, they remain in contractionary territory. ⑹ Tariff uncertainty has made the operating environment unpredictable for businesses, forcing them to adopt streamlined operational strategies. ⑺ The inventory index fell to 44.1 in July, its lowest point since May 2020, and the employment index also fell from 46.7 to 46.2. ⑻ Notably, input cost inflation eased, with the input price index falling to 57.0, its lowest level since November of last year.
