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Canada's Manufacturing Sector Faces 11th Month of Decline

1/3/2026

29 4 Full Breakdown

Summary

Story summary

Canada’s manufacturing sector contracted for the 11th consecutive month in December as S&P Global Manufacturing Purchasing Managers’ Index rose to 48.6 from 48.4.
The decline stems from trade uncertainty and tariffs that have reduced output and orders, with job losses and higher input costs.
Economists expect subdued growth into 2026, with a GDP contraction in the fourth quarter, while the Bank of Canada may keep its policy rate at 2.25%.

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Story summary

Canada’s manufacturing sector contracted for the 11th consecutive month in December as S&P Global Manufacturing Purchasing Managers’ Index rose to 48.6 from 48.4.
The decline stems from trade uncertainty and tariffs that have reduced output and orders, with job losses and higher input costs.
Economists expect subdued growth into 2026, with a GDP contraction in the fourth quarter, while the Bank of Canada may keep its policy rate at 2.25%.