TORONTO—Canadian manufacturing activity accelerated in August to its fastest pace in two years, adding to evidence of a rapid rebound in the domestic economy as businesses reopen following coronavirus-related disruptions, data showed on Tuesday.
In April, when many businesses were closed to help contain the coronavirus pandemic, the index slumped to a record low of 33.0.
The data "highlighted a strong upturn in the Canadian manufacturing industry, continuing the recovery from the severe second quarter downturn," Shreeya Patel, an economist at IHS Markit, said in a statement.
"Production and order book volumes both expanded at the fastest pace in two years, driven by the reopening of client businesses and improvements in customer demand," Patel said.
The PMI's measure of new export orders showed that foreign demand for Canadian goods expanded for the first time in six months, while the employment index climbed to its highest level since January 2019.
On a more cautious note, IHS Markit said that transportation delays, reduced staff and pandemic restrictions contributed to one of the steepest deteriorations in supplier performance since the start of the survey and input price inflation accelerated to a 19-month high.