FX.co ★ Canadian Private Sector Activity Deteriorates

The S&P Global Canada Composite PMI declined to 48.1 in October from 48.7 in September, remaining below the neutral 50 threshold for a fifth consecutive month and indicating a continued deterioration in private-sector business conditions. Output fell in both manufacturing and services, with contractions of similar scale. Manufacturing activity contracted for the first time in 2026, while services activity declined for the fifth month in a row. The downturn was closely tied to a comparable drop in new business, underscoring persistent demand weakness. Employment also decreased as firms faced limited capacity pressures, evidenced by a further reduction in backlogs of work. At the same time, cost pressures intensified, leading businesses to increase their selling prices at a faster pace.