Canada’s manufacturing sector continued to expand in June, with production, new orders, and employment all recording steady growth, according to the latest S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI). The PMI edged up to 53.0 in June from 52.9 in May, marking the sixth consecutive month above the 50-point threshold that signals expansion. Manufacturing output increased modestly, while employment reached its highest level since October 2024 as companies hired more workers to meet growing workloads.
Despite the positive headline figures, underlying challenges continued to weigh on the sector. S&P Global Market Intelligence noted that much of the growth was supported by stockpiling as manufacturers and their customers sought to mitigate ongoing supply chain disruptions. Supplier delivery times lengthened to their worst level since September 2022, largely due to shipping disruptions caused by the conflict in the Middle East.
Manufacturers also faced mounting cost pressures during the month. Higher oil prices, rising transportation expenses, and U.S. tariffs pushed input costs sharply higher, with the input price index climbing to 67.2, its highest level since July 2022. At the same time, business confidence weakened to a three-month low, reflecting growing concerns over persistent supply shortages and escalating inflationary pressures.
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