FX.co ★ Canada Private Sector Activity Contracts

The S&P Global Canada Composite PMI fell to 47.8 in August 2026 from 49.7 in July, its lowest level since March, as mounting weakness in the services sector outweighed gains elsewhere. The decline came against a backdrop of escalating tensions with the US and in the Middle East. Business confidence in the services sector regarding future activity dropped to its lowest point since June 2025, with rising prices increasingly viewed as a risk to future performance. The softness in services offset growth in manufacturing output for the fifth consecutive month. Input price inflation eased over the month but remained elevated, with fuel and energy costs still highly volatile. Employment was broadly unchanged.