S&P Global Says Canada's Manufacturing PMI Rose in January to 12-Month High

09:47 AM EST, 02/02/2026 (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, edged above the critical 50.0 no-change mark in January for the first time in a year to signal an improvement in overall operating conditions, said S&P Global on Monday.

After accounting for seasonal factors, the index recorded 50.4, up from 48.6, and a 12-month high, wrote S&P Global in a note.

S&P said Canada's manufacturing sector experienced a relatively positive start to 2026. It noted output stabilized and job numbers improved amid signs of an uplift in confidence amongst manufacturers about the future. Although new orders continued to fall, they did so only marginally and at the weakest rate in 12 months.

However, S&P added, tariffs continued to weigh on sector performance as exports fell again, especially to the neighbouring United States.

According to S&P, manufacturers indicated some confidence in the outlook during January, with sentiment improving to a three-month high amid expectations of an upturn in demand and broader economic growth in the year ahead. It said this fed through positively to employment decisions, with the latest data showing a net gain in staffing levels for the first time in a year -- although growth was marginal.

On the price front, tariffs remained a key driver of cost inflation, which accelerated noticeably during January to a five-month high, said S&P. Responding to the latest round of input price inflation, manufacturers increased their own markedly and to the greatest degree since March 2025, it noted.

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