The S&P Global Canada Composite PMI climbed to 48.7 in September 2026 from 47.8 in August, but remained below the neutral 50.0 threshold for a fourth consecutive month, signaling continued overall contraction. Activity in the services sector persisted in decline, though the rate of contraction eased, while manufacturing output continued to grow but at a more subdued pace. New orders fell in both sectors, and overall employment registered a net decrease. Cost pressures strengthened, especially in manufacturing, even as overall output prices rose at their slowest rate since February. Nonetheless, business confidence improved, with sentiment regarding the outlook reaching its highest level in five months.