Canada Factory Activity Contracts Less

2025-11-03 14:42 By Felipe Alarcon 1 min. read

The S&P Global Canada Manufacturing PMI rose to 49.6 in October from 47.7 in September, signalling only a marginal deterioration and the slowest contraction since January.

Output and new orders both fell at much weaker rates, with production down only fractionally and new orders slipping to their weakest pace so far this year.

Tariffs and volatile trade policies remained the main constraint, hitting export sales, delaying customs and keeping input costs elevated.

Employment registered a marginal fall as firms continued not to replace leavers, with job losses easing to a much softer pace than earlier in the year.

Input cost inflation stayed elevated and rose considerably amid tariff-related price pressures, while firms were more able to raise selling prices than in September as output price inflation picked up from an 11 month low.

Looking ahead, confidence improved to its highest level since January but remained below trend as unpredictable trade policy continued to cloud the outlook.



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