Canada: Markit Manufacturing PMI jumps to 52.9 in July vs. 44.1 expected

• Markit Manufacturing PMI for Canada rose more than expected in July.
• USD/CAD is edging lower toward 1.3400 after the data.

The economic activity in Canada's manufacturing sector expanded at a modest pace in July with the IHS Markit's Manufacturing PMI arriving at 52.9. This reading followed June's print of 47.8 and beat the market expectation of 44.1 by a wide margin.

Commenting on the data, July data highlights a partial rebound in the Canadian manufacturing sector after the steep downturn seen during the second quarter of 2020," said Tim Moore, Economics Director at the IHS Markit. "Production volumes expanded at the fastest pace for nearly two years, helped by a tentative recovery in manufacturing sales as customers restarted spending amid an easing of COVID-19 restrictions."

Market reaction

The USD/CAD pair edged slightly lower after this report and was last seen gaining 0.1% on a daily basis at 1.3404.