A solid uplift in output and new orders supported an improvement in business conditions in Canada's manufacturing sector during February. Output, new orders and purchasing activity all rose solidly while favourable demand conditions underpinned job creation. There were, however, ongoing supply-side issues with material scarcity leading to lengthy lead times. As a result, severe capacity pressures emerged, and backlogs rose sharply. On the cost front, sharp price pressures continued with input price inflation accelerating in February. Firms passed on part of the burden in an attempt to protect profit margins. The ... (full story)