FX.co ★ Canada Factory Activity Rises to 13-Month High

The S&P Global Canada Manufacturing PMI rose to 51.0 in February 2026 from 50.4 in January, marking a second consecutive month of improvement and the highest reading in 13 months. Output was broadly unchanged, but new orders returned to growth for the first time in over a year, with stronger domestic demand offsetting a continued decline in export sales amid persistent headwinds from U.S. tariffs. In response, healthier order books supported the fastest increase in employment in 13 months, as firms expanded capacity to accommodate higher workloads and planned growth. At the same time, input cost inflation accelerated to a six-month high, driven by higher steel and aluminum prices, prompting manufacturers to raise selling prices at the sharpest pace since March 2025. Looking ahead, business confidence in future output strengthened to its highest level since December 2024.