FX.co ★ Canada Factory Activity Contracts for 4th Month

The S&P Global Canada Composite PMI rose to 47.1 in February 2026, up from 46.4 in January, but remained below the 50.0 no-change threshold for a fourth consecutive month. Manufacturing activity strengthened to 51 from 50.4 in February, while the services index increased to 46.5 from 45.8, with the latter continuing to be the primary source of overall weakness. New business volumes fell for the fifteenth straight month, placing further pressure on output. Backlogs of work declined sharply again, as firms were able to comfortably manage existing workloads. Employment fell for a sixth consecutive month, though only slightly, as companies reduced headcount or opted not to replace departing staff. Business confidence improved from January, reaching its highest level since October of the previous year. On the price front, input cost inflation eased to its lowest reading since September 2024, while output charge inflation strengthened notably, reaching its highest level since July 2025.