The S&P Global Canada Composite PMI recorded 48.4 in August 2025, down from 48.7 in July, the second best so far this year, although still marking the ninth consecutive monthly contraction in private-sector activity. Both the manufacturing (48.3 vs 46.1) and services (48.6 vs 49.3) sectors posted softer downturns, with new orders continuing to fall but at a less pronounced pace than in July. Backlogs of work decreased again, with a sharp reduction that was the steepest since April. Employment stabilised, with numbers broadly unchanged across the private sector. Business confidence moderated and remained well below its long-term trend. On the price front, input-cost inflation softened to a seven-month low, while output-charge inflation slowed to its weakest pace in four months, though still registering a rise.