Canadian Manufacturing Expands Slowly Amid Trade Tensions
The Canadian manufacturing sector saw its slowest expansion in six months in September due to trade frictions and elevated energy prices. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) fell to 51.5, down from 53.0 in August.
This marks the lowest level since March, with a reading above 50 indicating expansion in the sector. According to Paul Smith, economics director at S&P Global Market Intelligence, 'Canada's manufacturing economy showed a degree of resilience in the face of several headwinds during September.'
However, he noted that tariffs and elevated global energy prices due to the war in Iran continued to have a damaging impact on the sector. The output index dipped to 50.8 from 52.8 in August, while the new orders measure slipped below the 50 threshold for the first time since March.
The future output index fell to its lowest level since December 2025 at 54.6, down from 58.7 in August. Delivery delays grew the most widespread since August 2022, and inflation pressures intensified.