Factory activity slides to a 6-month low in January

Canadian factory activity grew at the slowest pace in six months in January, data showed on Monday, highlighting challenges to the economy as restrictions to contain the coronavirus pandemic threaten to slow activity. The IHS Markit Canada Manufacturing Purchasing Managers’ index (PMI) fell to a seasonally adjusted 54.4 in January, its lowest since July, from 57.9 in december but remaining well above the 50 threshold that marks expansion in the sector. december’s reading was the highest level for the PMI since the survey began in October 2010. “Latest data signalled another month of expansion in the Canadian manufacturing sector,” Shreeya Patel, an economist at IHS Markit, said in a statement. “Ongoing restrictions and border closures continue to pose a threat to exports and factory operations.”