The S&P Global Canada Composite PMI recorded 50.3 in October 2025, up from 46.3 in September, marking the first rise in private sector activity since November 2024. Both the manufacturing (49.6 vs. 47.7) and services (50.5 vs. 46.3) sectors showed strong recoveries, with the latter returning to marginal growth while new orders continued to fall and weighed on output. Backlogs of work decreased sharply and at steep rates as firms comfortably handled both new and existing contracts. Employment fell modestly as firms cut staffing amid spare capacity and weak demand. Business confidence remained below trend and lower than in September. On the price front, input cost inflation remained elevated despite softening slightly from September’s three-month high, while output charge inflation strengthened as selling prices were raised solidly but were limited by competitive pressures.