Canada: Markit Manufacturing PMI rises to highest level in 10 years at 58.5

• Markit Manufacturing PMI in Canada rose to 58.5 in March.
• USD/CAD posts small daily gains around 1.2570 after the data.

The business activity in Canada's manufacturing sector continued to expand at a robust pace in March with the IHS Markit Manufacturing PMI rising to 58.5 from 54.8 in February. 

Commenting on the data, "Canadian manufacturers ended the first quarter of 2021 on an upbeat note with the headline PMI figure improving to the strongest in the ten-year history of the survey," noted Shreeya Patel, Economist at IHS Markit. "The growth was driven by stronger demand as COVID-19 restrictions continue to ease across the provinces. Meanwhile, a near-record rise in backlogs suggests greater employment in the months ahead."

Market reaction

The USD/CAD pair showed no immediate reaction to this report and was last seen trading at 1.2575, where it was up 0.13% on a daily basis.