Canada Manufacturing PMI Enters Contraction for First Time in 2026

Key Facts

The Canadian manufacturing PMI showed the sector contracting in October for the first time in 2026. StreetInsider reported that this downturn ended a growth streak for the Canadian manufacturing sector that had persisted since the beginning of the year, driven by softening production levels and new orders.

Data released on November 2, 2026, placed the index at 49.6, down from the previous reading of 51.5. This shift into contraction territory follows the Bank of Canada's decision on October 28, 2026, to set interest rates at 2.5%, and recent GDP figures showing a 0.1% contraction for the month of September.

Market participants are looking ahead to the release of Canada's Balance of Trade data on November 4, 2026, followed by the employment change and unemployment rate reports scheduled for November 6, 2026.