The S&P Global Canada Composite PMI rose to 45.5 in May 2024 from 41.7 in April, signaling the sixth consecutive monthly contraction in private sector activity, though the slowest pace of decline since February. Both the manufacturing (46.1 vs. 45.3) and services (45.6 vs. 41.5) sectors posted similar levels of contraction. New orders continued to fall, but the rate of decline eased to a four-month low. Backlogs of work decreased further, and marginal job losses were recorded across the private sector, even as business confidence improved to a four-month high. On the price front, input cost inflation accelerated and remained above the long-term trend. In response to rising costs, output charge inflation also picked up, reaching its highest level in over a year.