Canada Manufacturing PMI Below 'Critical' 50.0 Mark in October as Inflationary Pressures Intensify, S&P Global Says

09:54 AM EST, 11/02/2026 (MT Newswires) -- Canada's manufacturing sector fell into contraction in October for the first time this year, with the S&P Manufacturing PMI dropping to 49.6 from 51.5 in September, its lowest level since December 2025, according to S&G Global in a Monday note. Output fell, while new orders recorded their sharpest decline in over a year as tariffs and geopolitical uncertainty dampened domestic and export demand, said S&P Global in its release. New export orders contracted for a fifth straight month. Supply-chain pressures worsened, with delivery times deteriorating at their fastest pace since August 2022, said S&P Global in its Canada Manufacturing PMI release. US Tariffs, particularly on steel, and rising fuel and freight costs drove input price inflation to its highest level since June 2022, it added. Manufacturers passed on some of these costs, pushing output price inflation to a more than four-year high. "Price pressures intensify," wrote S&P Global in the release. Business confidence remained subdued amid persistent trade and geopolitical uncertainty.