FX.co ★ Canada Manufacturing Growth Falls to 6-Month Low

The S&P Global Canada Manufacturing PMI slipped to 51.5 in September 2026 from 53.0 in August, marking its weakest reading in six months. Output continued to grow, but at a slower pace, as firms reported increasing caution among clients. New export orders fell for the fourth consecutive month, reflecting softer demand from US customers amid rising trade frictions. Additional strains on already stretched supply chains were attributed to customs delays and issues at the US border, the conflict with Iran, and AI-related demand. Delivery delays were the most widespread since August 2022, and vendors highlighted shortages of available stock. As a consequence, manufacturers drew down existing inventories, leading to the first decline in purchasing stocks in six months. Product shortages and elevated energy prices drove input costs higher, pushing inflation to its highest level since mid-2022. Business confidence weakened to its lowest point since December 2025, as multiple headwinds continued to weigh on sentiment.