Canada Manufacturing PMI Falls to 48.4 in November as Demand, Hiring Continue to Weaken: S&P Global

09:46 AM EST, 12/01/2025 (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, came in at 48.4 in November, down from October's 49.6, said S&P Global on Monday.

The index has signaled a sustained downturn in operating conditions throughout much of 2025, although the latest contraction was relatively modest and much weaker than seen earlier in the year, wrote S&P Global in a note.

Similar trends were observed for both production and new orders. Firms continued to note a general air of uncertainty in product markets, which resulted in subdued demand and modest contractions in both output and new work, noted S&P Global.

This was again especially the case for new export trade, which fell for a tenth successive month in November. United States tariffs remained a factor weighing on international demand.

The general lack of demand and falling production requirements tended to discourage firms from hiring

additional workers in November. On the contrary, firms typically chose not to replace any leavers, with the net impact being a modest overall fall in staffing levels. It was the tenth successive month in which employment had overall declined.

But confidence overall remained historically subdued, as some uncertainty in the outlook persisted, especially in relation to tariffs, it added.

Although production requirements were set to rise, limited growth expectations meant firms continued to reduce purchasing activity, instead, focusing on utilising existing stocks wherever possible.

Tariffs and higher supplier charges pushed up overall input costs in November, but inflation overall was the weakest for over a year, according to S&P Global.

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