Canada’s March business surveys pointed to a private sector that was still losing momentum, even as some indicators suggested the downturn was becoming less severe. Manufacturing stalled, services remained in decline, and companies faced renewed cost pressure while demand stayed weak.
The broadest gauge remained negative. In a Reuters report, the S&P Global Canada Composite PMI Output Index increased to 47.6 in March from 47.1 in February, but still at a level commonly understood to be still in a contraction state.
Factory activity offered little support. The Canada Manufacturing PMI fell to 50.0 from 51.0, suggesting manufacturers moved from modest expansion in February to flat conditions in March.
Services remained the bigger drag. The Canada Services Business Activity Index rose to 47.2 from 46.5, its strongest reading in five months, but still signaled shrinking activity.
Demand remained weak. The new business index increased to 47.7 from 46.9, but it stayed below 50.0 for a 16th straight month, pointing to another month of reduced incoming work for service providers.
Costs also moved higher. The Input Prices Index climbed to 62.3 from 57.1, its highest level since June, with firms citing higher energy bills and shipping-related costs.
Trade uncertainty added to the strain. Canadian businesses are also dealing with US tariffs and uncertainty around CUSMA negotiations ahead of the July 1 review deadline.
The strongest positive signal came from expectations. The future activity index rose to 61.9, the highest level in six months, showing that firms still expect conditions to improve over the next year.
Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
