FX.co ★ Canada Private Sector Activitty Contracts for 10th Month

The S&P Global Canada Composite PMI fell to 46.3 in September 2025 from 48.4 in August, signaling the tenth consecutive month of contraction in private sector activity. Both the manufacturing sector (47.7 down from 48.3) and the services sector (46.3 down from 48.6) experienced more pronounced declines, with new orders continuing their descent, thereby affecting overall output. Backlogs of work saw a significant drop, decreasing at the sharpest rate observed in over five years. Employment experienced a slight decline as companies reduced staff in response to excess capacity and weak demand. While business confidence reached its highest point since the previous November, it remains fragile. In terms of pricing, input cost inflation surged to a three-month high, although output charge inflation slowed to its weakest since April, with selling prices experiencing only modest increases.