Canada’s manufacturing sector shrank further in June, according to a report released Tuesday by S&P Global.
The Manufacturing Purchasing Managers’ Index (PMI) fell to 48.8 in June. The level is 0.2 percentage points lower than the 49 recorded in May, while the market expectation for the index should have been 49.6.
A reading above 50 indicates expansion, while below 50 indicates contraction.
The report said simultaneous declines in production, new orders and employment were recorded, adding that Canadian manufacturers reported a slight increase in warehouse stocks for the second month in a row, reports Anadolu Agency.
Paul Smith of S&P Global Market Intelligence wrote that reports of subdued demand in the market, both domestically and abroad, were widespread, with clients reportedly pulling back on new business commitments given the uncertain economic outlook.
He added that in the year’s second half, it would be difficult to escape the subdued industrial performance due to the lack of market demand.
Canada Will Receive Half a Million Immigrants a Year
Canada has increased the number of immigrants it will accept annually to about half a million people by 2025 to make up for a large domestic labour shortage, the immigration minister said.
Over 900,000 jobs are vacant in many sectors, and unemployment has fallen to a historic low in recent months, reaching 5.2 per cent in September.
Ottawa, therefore, intends to grant permanent residence to 465,000 people in 2023, 485,000 in 2024 and 500,000 in 2025, Beta reports.
The Canadian government intends to improve the selection programs of potential immigrants to better respond to large labour shortages in health care, specialized jobs, manufacturing, and the so-called natural sciences sector (STEM – science, technology, engineering and mathematics).