Canada Manufacturing PMI Rises to 49.6 in October, Signals Easing Contraction, S&P Global Says

09:55 AM EST, 11/03/2025 (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, recorded 49.6 in October, said S&P Global on Monday.

That was up from 47.7 in September and pointed to only a marginal deterioration in operating conditions that was the weakest in the current period of contraction of nine months, wrote S&P Global in a note.

The relatively better performance of the PMI in October reflected noticeably slower falls in both production and new orders compared to September, it stated. Production fell fractionally, while new orders were down to the weakest extent since January.

That said, panellists continued to report that market conditions were challenging, especially in relation to international trade and notably the neighboring United States. Export sales subsequently fell again in October, albeit only modestly and to the weakest degree in nine months.

Firms are also hopeful of a stabilization of market conditions in the year ahead, with sentiment improving in October to its highest level since January. Firms reported planning to bolster research and development investment and expand product ranges.

Employment edged lower as firms chose not to replace departing workers, reflecting excess plant capacity and sharply reduced work backlogs through the month. Purchasing activity was also cut at the fastest pace in three months.

S&P Global said input cost inflation remained heavily influenced by tariffs in October, with data showing a substantial rise in input prices. A broad range of goods, particularly those imported from the U.S. or affected by U.S. trade policies, became more expensive.

Manufacturers attempted to pass higher costs on to customers through increased selling prices. While output price inflation was still below levels seen earlier in the year, it rose "noticeably" from September's 11-month low.

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