Factory activity grows at slowest pace in 17 months

TORONTO — Canadian manufacturing activity lost some momentum in June as inflation pressures and material shortages held back production and firms became less optimistic about future output, data showed on Monday.

The S&P Global Canada Manufacturing Purchasing Managers’ Index fell to a seasonally adjusted 54.6 in June, its lowest level since January 2021, from 56.8 in May. A reading above 50 shows growth in the sector.

“There were signs of difficulty in Canada’s manufacturing sector in June,” Shreeya Patel, an economist at S&P Global, said in a statement. “Global supply issues and steep price pressures were at the heart of the issue, and are expected to continue to disrupt the manufacturing economy this year.”