FX.co ★ Canada Private Sector Activity Contracts for 2nd Month

In December 2025, the S&P Global Canada Composite PMI registered at 46.7, a slight increase from 44.9 in November, although it continued to linger below the neutral 50.0 mark for the second consecutive month. The manufacturing sector saw a modest rise to 48.6 from November's 48.4, while services increased to 46.5 from 44.3. Despite these gains, the services sector remained the primary contributor to the economic contraction. New business volumes declined for the thirteenth month in a row, exerting continuous pressure on output levels. Although the backlogs of work saw a decrease, this occurred at a less drastic rate compared to recent months as companies operated with surplus capacity. Employment experienced its fourth consecutive month of reductions, with job losses occurring at a slightly reduced rate compared to November, as firms continued to adjust their workforce numbers. Business confidence showed signs of improvement but stayed significantly below typical levels. Regarding pricing, input cost inflation remained high with little change from November, while output charge inflation increased notably but still trailed below the usual trend.