Canada Private Sector Activity Contracts for 2nd Month

The S&P Global Canada Composite PMI rose to 49.7 in July 2026 from 47.9 in June, signaling 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.

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.