S&P Global PMI Signals Downturn in Canada's Manufacturing Sector Continues to Ease in August

09:41 AM EDT, 09/02/2025 (MT Newswires) -- The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI), a composite index designed to provide an overview of the health of the manufacturing sector, rose to 48.3 in August.

That was up from 46.1 in July and the highest PMI reading since January, said S&P Global on Tuesday. However, by remaining below the critical 50.0 no-change mark for a seventh successive month, the PMI signalled continued

sector contraction.

Canada's manufacturing economy remained inside contraction territory during August, with output, new orders and employment all declining since July, although at "noticeably" slower rates compared with earlier in the year, wrote S&P Global in a statement. A lack of demand, especially from international markets due to tariffs, was again widely noted by manufacturers.

Tariffs also continued to underpin inflationary pressures, with prices rising to a stronger degree than in July, whilst customs delays and logistical challenges led to a further lengthening of lead times, it added.

Confidence in the future meanwhile improved but remained

well below trend. Continued uncertainty in the outlook, plus

present sales weakness, led firms to make further cuts to

employment and purchasing activity, according to S&P Global.

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