Canada: S&P Manufacturing PMI drops to 54.6 in June vs. 56.6 expected

• Canada S&P Global Manufacturing PMI fell short of market expectation in June.
• USD/CAD continues to trade slightly above 1.2850 after the data.

The business activity in Canada's manufacturing sector expanded at a softer pace in June than in May with the S&P Global Manufacturing PMI dropping to 54.6 from 56.8. This print came in weaker than the market expectation of 56.6.

Commenting on the data, "there were signs of difficulty in Canada’s manufacturing sector in June," noted Shreeya Patel, Economist at S&P Global Market Intelligence.

"The PMI dipped to the lowest for 17 months amid softer uplifts in output, new orders, purchases and employment," Patel added. "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."

Market reaction

The USD/CAD pair showed no immediate reaction to these comments and was last seen losing 0.17% on the day at 1.2860.