S&P Global Canada Manufacturing PMI falls to 49.6 in October, first contraction in 2026

by Nikki M Christopher

Canadian manufacturing slipped back into contraction in October, as new orders fell sharply while cost pressures climbed.

The S&P Global Canada Manufacturing PMI fell to 49.6 in October, reported Nov 2, its first contraction in 2026, down from 51.5 in September. Output was 48.4 and new orders were 46.5, the steepest drop in over a year. Input costs reached 71.7 and output prices 62.3, the highest in over four years, and employment fell for the first time since March.

That combination matters more than the headline: demand is softening at the same time as factories are passing through their highest price increases in over four years.

For investors and business buyers, this is a margin squeeze setup. Industrial and manufacturing exposed businesses face weaker order books with rising input costs, which pressures earnings and, with them, exit multiples. Buyers should underwrite orders and pricing power carefully, and owners thinking of selling should expect diligence to focus on the order book first.

Source: S&P Global Canada Manufacturing PMI, October 2026, reported Nov 2, 2026.

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