FX.co ★ Canada Private Sector Activity Plummets in March

The S&P Global Canada Composite PMI decreased to 42 in March 2025, falling from 46.8 in February. This marks the most significant decline in private sector output since the COVID-19 downturn in June 2020. Services experienced a notable contraction, with the PMI dropping to 41.2 from 46.6 in February, while manufacturing also saw a faster decline, with the PMI lowering from 47.8 to 46.3. The downturn was further driven by a reduction in new orders, predominantly due to uncertainties related to tariffs and Canada's political climate, resulting in the most substantial decrease in new business since June 2020. Consequently, job losses continued for the third consecutive month, and the outlook on future prospects reached its lowest point since May 2020. Concurrently, cost pressures intensified, with input price inflation climbing to a peak not seen in nearly two and a half years.