FX.co ★ Canada Manufacturing Activity at 4-Year High

The S&P Global Canada Manufacturing PMI inched up to 53.5 in July 2026 from 53.0 in June, marking its highest level since June 2022 and confounding expectations for a decline to 50.2. The index signaled a fourth consecutive month of expansion, driven by stronger output and new orders amid firmer domestic demand. However, export orders fell for a second month in a row, weighed down by tariffs and the conflict in the Middle East.

Input cost inflation accelerated to a four-year high as supply shortages and longer delivery times intensified. Stronger demand further strained supply chains and added upward pressure on prices, leading manufacturers to raise selling prices alongside increased purchasing activity.

Firms also expanded their workforce to accommodate higher demand, while inventories of finished goods rose, in part reflecting shipping delays. Despite ongoing growth in sales and production, business confidence slipped to a four-month low as companies remained wary of rising costs and heightened geopolitical uncertainty.