Canada Manufacturing PMI Drops to 51.5 in September as Demand Slows

Canadian manufacturing activity expanded at a slower pace in September as the S&P Global Canada manufacturing PMI fell to 51.5 from 53.0 in August, reaching its lowest level since March. While the index remained in expansion territory above 50.0 for the sixth straight month, underlying indicators deteriorated. New orders fell into contraction for the first time since March, while export orders fell for a fourth straight month amid trade frictions with the United States. Simultaneously, input cost inflation accelerated to its highest level since July 2022 and supplier delivery delays hit their worst levels since August 2022.