• Prior was 47.8
• Steepest drop in new orders since May 2020, continuing a sharp fall from February
• Firms remained outright pessimistic about their expected level of production in 12 months’ time, with output typically forecast to be lower than present in 12 months’ time
• Production, purchasing and employment were all reduced noticeably

Commenting on the latest survey results, Paul Smith, Economics Director at S&P Global Market Intelligence said:

“Canada’s manufacturing economy endured a challenging month in March as the spectre of tariffs being applied on a wider range of goods and services continued to weigh heavily on the sector. Product markets were again broadly paralysed, with clients unwilling to commit to new work given the considerable and enduring uncertainty related to tariffs that is weighing on business decisions.

“Unsurprisingly, export trade suffered especially, and firms are growing increasingly pessimistic about the outlook, typically now expecting to see output decline from present levels over the coming year. Not surprisingly, firms are cutting back on purchasing, lowering their inventories and not replacing leavers or filling previous vacancies.

“Adding to the gloomy picture, and again a direct consequence of trade tariffs, inflationary pressures have picked up, with input costs rising to a degree not seen since the summer of 2022.”

USD/CAD is up 17 pips to 1.4404 on the day, which is up 15 pips since the data.

This article was written by Adam Button at www.forexlive.com.