Canada: S&P Global Manufacturing PMI recovers to 49.8 in September vs. 50.6 expected

• Canada S&P Global Manufacturing PMI rebounded modestly in September.
• USD/CAD trades deep in red near 1.3700 after the data.

The business activity in the Canadian manufacturing sector contracted at a modest pace in September with the S&P Global Manufacturing PMI coming in at 49.8. This print followed's August reading of 48.7 but came in lower than the market expectation of 50.6.

Commenting on the data, "the close of the third quarter yielded a mixed bag of results for Canada's manufacturing sector with a back-to-back deterioration in operating conditions recorded during September," said Shreeya Patel, Economist at S&P Global Market Intelligence."

"Output and new orders continued to fall with the sector still feeling the repercussions of material shortages and delivery delays," Patel added. "Demand was once again hit by client hesitancy in the wake of rising interest rates and weak macroeconomic conditions."

Market reaction

USD/CAD stays under bearish pressure after this data and was last seen losing nearly 1% on the day at 1.3695.