Canada’s Manufacturing Purchasing Managers' Index (PMI) Hits Four-Year High in July 2026

The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) rose to 53.5 in July 2026, up from 53.0 in June. The reading marks the seventh straight month the index has stayed above the 50-point expansion threshold and the highest level since June 2022. The output index climbed to 52.6 from 52.1, while the new-orders measure reached 53.5, up from 52.2 in June. The input-prices index jumped to 68.3, its highest since July 2022, and the future-output index slipped to 55.4 from 55.7, the lowest since March.

Reuters

Panelists attributed the uptick to firmer domestic activity. Stronger consumer spending and inventory replenishment encouraged firms to raise staffing levels, supporting capacity and current workloads. Employment rose for a fourth consecutive month, reflecting firms’ confidence in meeting stronger home-market demand.

Canada Manufacturing Activity at 4-Year High

Export orders fell for a second month, with respondents citing U.S. tariffs on nearly $20 billion of Canadian goods and the Middle-East conflict as primary drags on international demand. Higher energy and transportation costs, together with supply-side disruptions, pushed input prices to a four-year high, prompting manufacturers to raise selling prices and extend delivery times.

Canada Manufacturing Activity at 4-Year High

• “PMI data for July painted a positive picture of current growth, with output and new orders both rising at faster rates on the back of firmer domestic demand,” — Paul Smith, economics director at S&P Global Market Intelligence

The Globe and Mail (Toronto)

• “Whether growth can be sustained at its current clip is doubtful. International demand remains weak, driven lower by tariffs and a highly uncertain geopolitical environment,” — Paul Smith, economics director at S&P Global Market Intelligence

The Globe and Mail (Toronto)