Canada's manufacturing sector expanded in July at the fastest pace in more than four years as rising ​domestic activity boosted production and new orders, but weak ‌international demand raised doubt over the sustainability of the increase.

The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) (opens pdf) edged up to 53.5 last month from 53.0 ​in June. It marked the seventh straight month that the ​index was at or above the 50 threshold and ⁠the highest reading since June 2022.

...

“PMI data for July painted a positive picture ​of current growth, with output and new orders both rising at faster rates on the back of firmer domestic demand," Paul Smith, economics director at S&P ​Global Market Intelligence, said in a statement.

...

"Companies were suitably encouraged ​to take on additional workers, raising their staffing levels to bolster capacity and ‌help ⁠support current workloads."

"Whether growth can be sustained at its current clip is doubtful. ​International demand remains ​weak, driven lower ⁠by tariffs and a highly uncertain geopolitical environment," Smith said.

...

Immediate production needs encouraged some manufacturers to take on additional staff. That led to a net increase in employment for a fourth successive month.

...