The S&P Global Canada Composite PMI recorded 47.6 in March 2026, up from 47.1 in February and remaining below the 50.0 no-change mark for a fifth straight month. Manufacturing fell to 50.0 from 51.0 in March, while services rose to 47.2 from 46.5, with the latter being the main driver of the downturn. New business volumes declined for a sixteenth consecutive month and continued to weigh on output. Backlogs of work decreased markedly again as firms were easily able to keep on top of workloads. Employment contracted for a seventh successive month, albeit modestly, as firms pared staff or chose not to replace leavers. Business confidence edged up since February and reached its highest level since last September. On the price front input cost inflation accelerated to its highest level since last June, while output charge inflation rose solidly and reached its greatest degree since July 2025.

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