The Canadian manufacturing sector continued to expand in August, with the S&P Global Canada Manufacturing PMI easing to 53.0 from 53.5 but remaining above the 50.0 mark for a fifth straight month, according to S&P Global on Tuesday.
Output and new orders both posted solid gains, while employment growth accelerated to its fastest pace since October 2024, wrote S&P Global in a note.
Purchasing activity also picked up as firms responded to increased production needs and replenished inventories, it said. However, part of the increase was driven by precautionary buying amid ongoing uncertainty over prices and supply availability.
Cost pressures remained elevated, despite input price inflation easing to a four-month low, added S&P Gobal. Manufacturers continued to cite US tariffs, higher fuel costs, and rising aluminium and steel prices as key drivers of cost increases. While some of these costs were passed on to customers, output price inflation also moderated from July.
Supply-chain disruptions continued to weigh on manufacturers in August, with delivery times deteriorating markedly, according to S&P Global. Tariff-related customs delays and shipping disruptions linked to the Middle East conflict further strained supply conditions.