FX.co ★ Canada’s Manufacturing Sector Returns to Expansion as S&P Global PMI Rises Above 50

Canada’s manufacturing activity moved back into expansion territory in January 2026, as the S&P Global Manufacturing Purchasing Managers’ Index (PMI) climbed to 50.4. The reading, updated on 02 February 2026, marks a notable improvement from December 2025’s 48.6, when the sector was still in contraction.

Crossing the 50.0 threshold is a key signal that overall manufacturing conditions are improving rather than deteriorating. January’s gain suggests that Canadian factories are seeing a modest revival in operating conditions after a weaker end to 2025. While the increase is not dramatic, the shift from 48.6 to 50.4 indicates a turnaround in momentum for the sector at the start of 2026.