FX.co ★ Canada Factory Activity Expands After 11-Month Rout

The S&P Global Canada Manufacturing PMI increased to 50.4 in January 2026, up from 48.6 in December, signaling the conclusion of an eleven-month decline and reaching a twelve-month peak. During this period, production levels stabilized, although incoming orders saw only a slight drop—the smallest reduction observed in a year. Survey participants indicated continued market uncertainty and tariffs from the United States were impacting trade. As a result, a decrease in capacity demand led to a slight net increase in staffing levels for the first time in twelve months, with certain companies hiring in anticipation of greater production. Meanwhile, input price inflation climbed to a five-month high, prompting firms to elevate their output prices to the highest extent since March 2025. Looking ahead, optimism regarding future production improved to its highest level in three months.