Canada Private Sector Activity Contracts

The S&P Global Canada Composite PMI declined to 47.9 in June 2026, marking the first contraction in 6 months in private-sector business activity, down from 50.8 in May. The decline was driven by weaker services activity, which more than offset a solid expansion in manufacturing output. New orders also declined during the month, pointing to softer demand. Despite the downturn in activity, private-sector employment continued to grow, although optimism regarding the future deteriorated. On the price front, inflationary pressures eased.

The S&P Global Canada Composite PMI increased to 50.8 in May 2026 from 49.9 in April, pointing to the strongest growth in private sector activity since November 2024. It reflected concurrent increases in both manufacturing (52.9 vs 53.3) and service (50.6 vs 49.2) sector output. New order growth was sustained, albeit was only marginal, whilst there was a slight reduction in employment. On the price front, input cost inflation accelerated to its highest level in nearly four years. Selling charges rose to their strongest degree since February 2023. Meanwhile, confidence in the outlook was the lowest for four months.

The S&P Global Canada Composite PMI rose to 49.9 in April 2026 from 47.6 in March, nearing the neutral 50 threshold and signaling a stabilization in business activity. A solid increase in manufacturing output helped offset a slight contraction in the services sector. New orders improved, and employment expanded for the first time in nearly a year, pointing to a modest recovery in demand. However, cost pressures remained elevated, with input price inflation largely unchanged, while output prices rose at the fastest pace since July 2023, indicating firms are passing higher costs on to customers.