FX.co ★ Canada Factory Activity Stagnates in March

The S&P Global Canada Manufacturing PMI slipped to 50.0 in March 2026 from 51.0 in February, indicating a stagnation in manufacturing sector performance and ending a two‑month spell of improvement. Output declined for the first time this year as new orders moved back into contraction, with elevated prices and ongoing headwinds from US tariffs continuing to weigh on export sales. In turn, subdued order trends led to a slight net reduction in staffing levels for the first time in three months, as firms adjusted operating capacity and showed reluctance to replace departing workers. Meanwhile, input price inflation quickened to its highest rate since last August, driven by rising fuel costs and higher supplier charges linked to the war in the Middle East, although output charge inflation eased to a three‑month low. Looking ahead, uncertainty stemming from the conflict and persistent tariff concerns pushed confidence in future output down to a three‑month low.