Canadian manufacturing pmi rose to its highest level in four years, as S&P Global said the sector posted its strongest performance since June 2022.
Output and new orders both picked up in the latest survey. Employment also increased for a fourth straight month. However, the report pointed to a mainly domestic recovery.
New export orders fell for a second month. Survey respondents again cited tariffs and the Middle East war as pressures on overseas demand. Meanwhile, the domestic market stayed firm despite the loonie trading near a four-year low.
Canadian Manufacturing PMI and Price Pressures
The inflation side of the report showed a sharper strain. Input costs climbed at the fastest pace in four years and extended an uptrend that has been in place since late 2025. Companies named energy, transport and steel as the main drivers. They also linked those pressures to tariffs and the Middle East conflict.
Manufacturers also raised their own selling prices by a strong margin. Those output charges stayed well above trend, although they remained below May’s near four-year high. In addition, supplier delivery times worsened again.
Stocks Rise as Confidence Slips
The survey also showed signs that firms are buying early to build inventories. As a result, stock levels increased at the fastest pace since the end of 2024. That pattern came as delivery times lengthened and cost pressures stayed high.
Still, business confidence weakened. Outlook sentiment fell to a four-month low and remained well below trend. Paul Smith of S&P Global Market Intelligence said current conditions look positive, but he added that sustaining growth at its current pace is doubtful because international demand is weak and prices are rising quickly.
The report also marked four straight months of expansion in Canada’s manufacturing sector.
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Source: InvestingLive
