Prior month 50.0Details:Growth components (demand & output)PMI: 53.3 (from 50.0) – strongest since June 2022Output: Strong increase – fastest pace since May 2022New orders: Sharp rise – strongest in over 4 yearsExport orders: Solid growth – best since early 2022⚠️ Growth largely driven by stockpiling / inventory building, not pure demandInventories & purchasingInput buying: Jumped – fastest since June 2022Input inventories: Slight increaseCustomer inventories: Being rebuilt (clients securing supply)🔑 Key driver: fear of shortages and higher future pricesSupply chain conditionsVendor delivery times: Worsened sharplyLongest delays since March 2025Issues tied to:Middle East conflictShipping disruptions (especially maritime routes)🔴 Ongoing supply chain stress (22 straight months of delays)Prices (inflation pressures)Input prices: Surged – largest increase in 3.5+ yearsDriven by fuel and freight costsTariffs also contributingOutput prices (selling prices):Firms raised prices at the fastest pace since late 2022🔥 Clear inflation pressure building in the pipelineEmployment & capacityEmployment: Slight increase (3rd gain in 4 months)Hiring cautious:Some firms not replacing leaversReflects:Growth vs uncertainty tensionBusiness sentiment / outlookConfidence: Improved to a 16-month highFirms expect:Stronger demand aheadBut concerns remain:Rising costsTariffsSupply chain risksBig picture takeawayGrowth is back, but not cleanDriven by defensive stock-building, not organic demandInflation + supply chain stress = key risks going forwardThe USDCAD was trading near session lows at 1.3555 ahead of the report. This article was written by Greg Michalowski at investinglive.com.