US Purchasing Managers Index, Canada Producer Price Index
March data pointed to a positive month for U.S. manufacturing business conditions, with momentum building again after a slowdown at the turn of the year, said Markit Wednesday. This was highlighted by stronger rates of output and new business growth, alongside sustained job creation during the latest survey period. New export sales remained a source of weakness in March, partly reflecting the stronger exchange rate. Meanwhile, input costs decreased for the third month running, which led to the weakest rise in factory gate charges since May 2014.
At 55.7 in March, up from 55.1 in February, the seasonally adjusted final Markit US Manufacturing Purchasing Managers’ Index registered above the 50.0 no-change threshold, thereby signalling an overall upturn in business conditions.
US Manufacturing PMI, Canada IPPI
US manufacturers indicated greater pressure on operating capacity in March, as highlighted by a rise in backlogs of work. The latest increase in unfinished work was the most marked since September 2014. Efforts to boost production schedules, as well as positive sentiment towards the business outlook, contributed to further job creation in March.
“The US manufacturing sector is clearly regaining momentum. Stronger new order growth and rising input buying in March help set the scene for improving production trends into 2Q 2015. The latest upturn in payroll numbers was the steepest for four months. Moreover, falling raw material costs continue to support operating margins.”
— Tim Moore, Senior Economist at Markit
SOURCE: Markit, US Federal Reserve
Canada’s Industrial Product Price Index (IPPI) increased 1.8 per cent in February, largely as a result of higher prices for energy and petroleum products. The Raw Materials Price Index (RMPI) rose 6.1 per cent, mainly because of higher prices for crude energy products.
The IPPI (+1.8 per cent) increased for the first time in six months in February, after decreasing 0.3 per cent in January.
The largest contribution to the rise in the IPPI in February was energy and petroleum products (+8.8 per cent).
The IPPI fell 1.6 per cent over the 12-month period ending in February, after decreasing 2.1 per cent in January.
