The S&P Global Canada Manufacturing PMI inched higher to 48.6 in December of 2025 from 48.4 in the previous month, marking the eleventh consecutive month of contraction in factory activity, albeit at the second slowest pace in the period. Output continued to decline in the period amid a fresh drop in new order intakes, with panellists citing persistent market uncertainty, especially in relation to tariffs from the United States. Consequently, the lower capacity demand in plants drove companies to another cut in employment levels, largely due to the non-replacement of leavers. Meanwhile, input price inflation rose slightly and drove firms to increase their output charges the most in six months. Looking forward, confidence in future output softened to a three-month low.