Canada’s manufacturing sector slides in August, but still posts fifth straight month of gains

Canada’s manufacturing sector slides in August, but still posts fifth straight month of gains FERGAL SMITH REUTERS PUBLISHED 55 MINUTES AGO Open this photo in gallery: A worker drives a cleaning machine at a Hitachi Energy plant that produces large-scale transformers, in Varennes, Que. ROGER LEMOYNE/THE GLOBE AND MAIL COMMENTS SHARE SAVE FOR LATER Listen to this article Learn more about audio Log in or create a free account to listen to this article. Key takeaways This summary is AI-generated and editor reviewed. Learn more Canada’s manufacturing sector expanded for a fifth straight month in August, with the PMI at 53.0, as output and employment rose. The survey was mostly conducted before the U.S. imposed new 50-per-cent tariffs on $28-billion of Canadian imports on Aug. 22, raising doubts about sustained growth. Despite trade tensions, firms grew more optimistic, with the future output index rising to 58.7, its highest level since December 2024. READ MORE Canada’s manufacturing sector expanded for a fifth straight month in August as output and employment rose but the recent increase in trade tensions between the U.S. and Canada cast doubt on the pace of growth being sustained. The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) edged down to 53.0 last month from 53.5 in July. The index has been above the 50 mark since April – a reading above 50 indicates expansion in the sector. “Canada’s manufacturing sector continued to enjoy growth in August, with output and new sales rising solidly, which helped to support job creation and provide a boost in optimism about the future,” Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. Hit by tariffs, Canadian tool-and-die makers eye opportunities in defence industry The output index edged up to 52.8 from 52.6 in July, while the employment measure was at 52.0, its highest level since October, 2024. “However, given the latest survey was mostly conducted before the recent collapse of trade negotiations with the U.S., we may have already seen a high-water mark for growth,” Smith said. The U.S. imposed new 50-per-cent tariffs on $28-billion of Canadian imports on Aug. 22 after talks between the two countries collapsed. The new export orders index increased to 48.2 from 48.0 in July but remained below the 50 threshold for the third straight month. Ontario EV battery plant to anchor new industrial megasite The measure of input cost inflation eased to…