S&P Global Says Canada's Manufacturing PMI for February Rises to Highest Level Since January 2025

09:47 AM EST, 03/02/2026 (MT Newswires) -- The seasonally adjusted S&P Global Canada Manufacturing Purchasing Managers' Index (PMI), a composite index designed to provide an overview of the health of the manufacturing sector, registered 51.0 in February, up from 50.4 in January and slightly above the crucial 50.0 no-change threshold, said S&P Global on Monday.

In addition, the latest reading was the highest since January 2025, wrote S&P Global in a note.

New orders were a bright spot in February, with growth recorded for the first time in 13 months, stated S&P Global. A renewed upturn in new business reflected improving domestic demand, which helped to offset a sustained decline in export sales. Latest data indicated a solid reduction in new work from abroad, although the rate of contraction eased to its least marked since October 2025.

The rate of job creation edged up since January and was the strongest for 13 months, pointed out S&P Global.

Manufacturing output was unchanged in February, which continued the stable trend seen so far in 2026. While some firms noted a boost from rising workloads, others cited caution about their production requirements and the impact of tight inventory strategies. Stocks of finished goods have decreased for 12 months in a row, although the latest reduction was only marginal.

February data indicated a sharp rise in purchasing costs, with many firms noting higher prices paid for aluminum and steel. The overall pace of cost inflation was the fastest for six months. Factory gate prices increased at the steepest rate since March 2025, which was linked to rising raw material prices and the impact of passing on reciprocal tariffs.

Canadian manufacturers were upbeat about their overall prospects for output growth during the next 12 months, added S&P Global. Around 24% of the survey panel predicted an expansion, while only 9% foresaw a reduction. This translated to the highest overall level of optimism since December 2024.

However, confidence levels remained much weaker than the long-run survey average.

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