TORONTO, (Reuters) – Canadian manufacturing activity grew slightly less than expected in November due to severe supply constraints. However, production accelerated despite these challenges.

IHS Markit Canada Manufacturing Purchasing managers’ Index (PMI), a seasonal adjusted 57.2, was lower than October’s 57.7 but remained well above the 50 threshold which marks sector growth.

Since July 2020, the index is at or above 50 per month.

Shreeya Ptel, economist at IHS Markit said that “the penultimate months of 2021 continued showing strong growth in Canada’s manufacturing sector.”

Sector’s performance was aided by strong production volume increases and steady rises in domestic as well as international demand.

As a result of longer delivery times, material shortages, and increased output, the index rose from 53.9 to 54.1 in October to 54.1 in May. The measure of preproduction inventories fell from 54.8 to 54.4 in May.

In the eleven-year-old history of the survey the suppliers’ delivery times index showed the worst performance of vendors. Meanwhile, the measure of unfinished work rose to an all-time high due to poor goods production.

Patel stated that while growth has been hampered by transport bottlenecks and material scarcity, firms are confident these issues will recede in 2022.