FX.co ★ Canada Private Sector Activity Contracts for 5th Month

The S&P Global Canada Composite PMI rose to 47.6 in March 2026, up from 47.1 in February, but remained below the 50.0 no-change threshold for a fifth consecutive month. Within this, the manufacturing PMI eased to 50.0 from 51.0 in March, while the services PMI increased to 47.2 from 46.5, with the weaker services performance continuing to lead the overall downturn. New business volumes fell for a sixteenth straight month, exerting further pressure on output. Backlogs of work declined sharply once again, as firms were easily able to keep pace with current workloads. Employment fell for a seventh successive month, though only modestly, as companies either reduced headcounts or opted not to replace departing staff. Business confidence improved from February, reaching its highest level since September of the previous year. On the price front, input cost inflation accelerated to its fastest rate since June 2025, while output charge inflation also strengthened, rising to its highest level since July 2025.