02.09.202513:40:04UTC+00Canada Factory Activity Contracts for 7th Month

The S&P Global Canada Manufacturing PMI increased to 48.3 in August 2025, up from 46.1 in July. Despite this uptick, the index still indicates a decline in Canada's private-sector manufacturing activity, marking the seventh consecutive month of downturn. This persistent decline is largely attributed to ongoing tariffs imposed by the United States on Canadian products, and Canada's subsequent retaliatory tariffs. Notably, both new orders and production experienced significant contractions, but these slowed considerably compared to the sharp declines registered in July. This slowdown occurs against a backdrop of reduced demand from Canada’s major trading partner. As a result, companies have been driven to cut back on their workforce for the seventh month in a row, although the rate of job losses has decelerated to its slowest since April. However, input costs have surged to their highest point in three months, maintaining significant cost pressures. Looking forward, businesses expressed caution due to unpredictable policy shifts, yet reported an increase in confidence to a seven-month high, though this remains significantly below the long-term average.