The S&P Global Canada Composite PMI recorded 46.3 in September 2025, down from 48.4 in August, marking the tenth consecutive monthly contraction in private sector activity. Both the manufacturing (47.7 vs. 48.3) and services (46.3 vs. 48.6) sectors declined at a faster rate, with new orders continuing to fall and weighing on output. Backlogs of work decreased sharply and at the steepest rate for over five years. Employment fell modestly as firms cut staffing amid spare capacity and weak demand. Business confidence improved to its highest level since last November but remained fragile. On the price front input cost inflation accelerated to a three month high while output charge inflation eased to its weakest pace since April and selling prices rose only modestly.