Canada's manufacturing PMI slows to a six-month low as trade friction weighs

Canada's manufacturing sector continued expanding in September, but at its slowest pace in six months, according to survey results reported on October 1. The S&P Global manufacturing purchasing managers' index fell to 51.5 from 53.0 in August. A reading above 50 indicates expansion, so the latest result signals a loss of momentum rather than an outright contraction in the sector. [1]

The weakness has a direct cross-border dimension. Trading Economics' account of the survey says new export orders declined for a fourth consecutive month as demand from U.S. customers weakened amid trade friction. Manufacturers also reported customs delays and difficulties at the U.S. border. These findings connect the broader economic indicator to Canadian firms' market access and supply-chain conditions, rather than simply describing domestic sentiment. [2]

Reuters reported that the output index fell to 50.8 from 52.8, while new orders moved below the growth threshold for the first time since March. The input-cost measure increased to 71.1 from 66.4, its highest level since July 2022. S&P Global attributed the difficult conditions to several pressures, including tariffs and higher energy costs associated with the conflict in Iran. [1]

Trading Economics also reported that delivery delays became the most widespread since August 2022 and that firms used existing inventories as suppliers faced shortages. Business confidence deteriorated to its weakest level since December 2025. For Canadian manufacturers, the release combines softer foreign demand with more difficult sourcing conditions. The survey identifies pressures businesses reported; it does not isolate a precise share of the deterioration caused by tariffs alone. [2]