The S&P Global Canada Composite PMI rose to 48.7 in July 2025 from 44.0 in June, although still marking the eighth consecutive monthly contraction in private-sector activity. Both the manufacturing (46.1 vs 45.6) and services (49.3 vs 44.3) sectors posted softer downturns, with new orders continuing to fall but at the slowest pace since January. Backlogs of work decreased again, with the mildest depletion since last November. Employment reversed course, recording marginal job losses across the private sector after modest gains in June. Business confidence strengthened to a six-month high as firms anticipated more stable market conditions. On the price front, input-cost inflation eased to a six-month low, while output-charge inflation slowed but remained in expansion territory for the third consecutive month.