FX.co ★ Canada Private Sector Activity Remains in Contraction

In July 2025, the S&P Global Canada Composite PMI increased to 48.7, up from 44.0 in June. Despite this rise, it still reflects an eighth straight month of contraction in private-sector activity. Both the manufacturing sector, which improved to 46.1 from 45.6, and the services sector, which rose to 49.3 from 44.3, experienced reduced downturns. New orders continued to decline, although at their slowest rate since January. Work backlogs saw another decrease, marking the least significant drop since last November. Employment saw a slight downturn, reversing June's modest gains, as minor job losses were noted across the private sector. However, business confidence bolstered, reaching its highest level in six months as firms expected more stable market conditions. On the pricing side, inflation for input costs lessened to a six-month low, while inflation for output charges decelerated but continued in expansion territory for the third month running.