Canada: Markit Manufacturing PMI slumps to 33 in April vs. 41.5 expected

Markit Manufacturing PMI for Canada falls more than expected in April.
USD/CAD pair continues to trade in positive territory above 1.4000.

Eren Sengezer FXStreet

The economic activity in Canada's manufacturing sector contracted at a strong pace in April with the IHS Markit's Manufacturing PMI slumping to 33 from 46.1 in March. This reading missed the market expectation of 41.5 by a wide margin.

Commenting on the data, "Canadian manufacturers unsurprisingly recorded a survey record drop in output during April as the COVID-19 pandemic led to either complete factory shutdowns or reduced production schedules, alongside rapidly shrinking customer demand," said Tim Moore, Economics Director at IHS Markit said. "Only a small minority of survey respondents indicated a rise in output volumes, which was almost exclusively linked to consumer essentials and production to support healthcare supply chains."

Market reaction

The USD/CAD pair largely ignored this data and was last seen trading at 1.4020, where it was up 0.6% on a daily basis.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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