FX.co ★ Canada Private Sector Activity Plunges for 5th Month

The S&P Global Canada Composite PMI decreased to 41.7 in April 2024, down from 42 in March. This marks the fifth consecutive month of contraction in the Canadian private sector and represents the most significant decline since June 2020. Both the manufacturing and service sectors experienced similar downturns. New orders fell sharply compared to March, leading to reduced pressure on capacity and consequently a decrease in employment levels for the fourth month in a row. Although there was a slight improvement in future business expectations, they remained notably subdued. Regarding pricing, input cost inflation dropped to its lowest point in three months, yet stayed high overall. As demand conditions softened, output prices experienced a marginal decline, marking the first decrease in over four years.