Canada Private Sector Activity Rebounds

The S&P Global Canada Composite PMI rose to 48.7 in September 2026 from 47.8 in the previous month, but remained below the neutral mark for the fourth consecutive month. Service-sector activity continued to contract, albeit at a slower pace, while manufacturing output expanded to a weaker degree. New orders declined across both sectors, while employment recorded a net decrease. Cost pressures intensified, particularly in manufacturing, although overall output prices increased at their slowest pace since February. However, sentiment toward the outlook improved, reaching its highest level in five months.

The S&P Global Canada Composite PMI declined to 47.8 in August 2026 from 49.7 in July, marking the lowest level since March, primarily driven by weakeness in the service sector, amid escalating tensions with the US and in the Middle East. Business confidence in the sector over future activity fell to its lowest since June 2025, with rising prices also seen as a threat to future business performance. The weakness from services offseted growth in manufacturing output for a fifth consecutive month. Input price inflation softened over the month, although remaining elevated with fuel and energy prices remaining volatile. Employment was broadly unchanged.

The S&P Global Canada Composite PMI rose to 49.7 in July 2026 from 47.9 in June, amid a second consecutive month of contraction in private-sector business activity, albeit at a slower pace. The improvement reflected stronger manufacturing output, while the services sector remained in contraction. New business followed a similar pattern. Employment continued to expand across the private sector, though business confidence weakened to its lowest level since June 2025. On the price front, both input costs and output charges increased at faster rates.