The S&P Global Canada Manufacturing PMI held in expansionary territory for a second consecutive month in May 2026, posting 52.9, slightly below April’s 53.3 but still above its long-run average. Growth was driven by further increases in both output and new orders, as firms reported stronger demand and success in securing new customers. Employment also continued to rise, with some manufacturers highlighting mounting pressure on existing capacity.
At the same time, inflationary pressures intensified, with input and output prices climbing to their highest levels in nearly four years. Supplier delivery times lengthened markedly, reflecting significant supply chain disruptions linked to the conflict in the Middle East. Despite ongoing expansion, overall business sentiment remained muted, weighed down by concerns over rising costs and the broader economic outlook.
