Canada Manufacturing PMI Rises to 51.1 in October

Canadian manufacturing activity experienced notable growth in October, with the S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) rising to 51.1, marking its highest level since February 2023. This increase reflects solid gains in production and employment as firms prepared for anticipated order increases. Meanwhile, China's manufacturing sector also saw improvement, with the Caixin/S&P Global PMI rising to 50.3 in October, indicating a slight recovery amidst ongoing economic challenges like low consumer confidence and weak export orders. The positive manufacturing data in both countries suggest potential stabilization in their respective economies, although external demand remains a concern for China. As Canada adjusts its monetary policy in response to decreasing inflationary pressures, the Bank of Canada is observing the effects of recent rate cuts. Analysts note that the health of the Chinese economy significantly impacts Australia’s dollar, particularly through demand for commodities like iron ore.