Canada: Markit Manufacturing PMI climbs to 55.1 in August vs. 50.4 expected

• Markit Manufacturing PMI in Canada rose more than expected in August.
• USD/CAD pair trades flat on the day a little below 1.3050.  

The economic activity in Canada's manufacturing sector expanded at a stronger pace in August than it did in July with the IHS Markit's Manufacturing PMI rising to 55.1 from 50.4. This reading beat the market expectation of 50.4.

Commenting on the report, "latest data highlighted a strong upturn in the Canadian manufacturing industry, continuing the recovery from the severe second-quarter downturn," noted Shreeya Patel, Economist at IHS Markit. "Production and
order book volumes both expanded at the fastest pace in two years, driven by the reopening of client businesses and improvements in customer demand."

Market reaction

This data doesn't seem to be having a significant impact on the CAD's performance against its major rivals. As of writing, the USD/CAD pair was flat on the day at 1.3043.