Canada manufacturing PMI falls below 50 as price pressures intensify

Canada's manufacturing sector registered a deterioration in operating conditions in October for the first time in 2026, S&P Global reported on November 2. Its seasonally adjusted manufacturing purchasing managers' index fell to 49.6 from 51.5 in September, the lowest reading since December 2025. A reading below 50 signals a decline compared with the previous month.

Production fell for the first time since March, and new orders contracted at the steepest rate in more than a year. Manufacturers reported that tariffs and geopolitical uncertainty weakened demand, while delivery delays disrupted production. Suppliers' delivery times deteriorated at the fastest rate since August 2022, according to the survey.

Input costs and manufacturers' selling prices rose at the fastest rates in more than four years. Employment recorded a net decline for the first time since March, and confidence in the outlook remained historically subdued. The survey covers a panel of around 400 manufacturers; October responses were collected between October 9 and 26.