Canada's September Manufacturing PMI at Weakest Level Since March, Inflation at Over Four-Year High, S&P Global Says

10:08 AM EDT, 10/01/2026 (MT Newswires) -- Canada's manufacturing sector grew for a second straight month in September, but momentum weakened as tariffs, softer demand and supply-chain disruptions weighed on activity, while inflation hit a more than four-year high, according to S&P Global on Thursday in its Canada Manufacturing PMI release. The seasonally adjusted S&P Global Canada Manufacturing PMI fell to 51.5 in September from 53.0, remaining above the 50.0 mark that separates expansion from contraction but registering its weakest reading since March, wrote S&P Global in the release. The data marked a sixth consecutive month of growth, although momentum was "modest." New orders edged lower for the first time in six months, while export orders fell for a fourth consecutive month amid weaker US demand and trade friction, said S&P Global. Supply-chain pressures also intensified, with delivery delays reaching their highest since August 2022. Widespread product shortages and rising fuel and energy costs pushed input prices sharply higher, driving overall inflation to its highest level since mid-2022, it added. Business confidence also weakened to its lowest level since December 2025, with tariffs and trade challenges with the United States cited as the main drivers of the decline. Despite the weaker outlook, manufacturers added workers for a sixth straight month, though employment growth slowed to its weakest pace since May, said S&P Global.