TORONTO — The downturn in Canada’s manufacturing sector deepened in June as US tariffs undercut demand, spurring the sharpest cut to output in five years, data on Wednesday showed.
The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) edged down to 45.6 in June from 46.1 in May, registering the fifth straight sub-50 reading. A level below 50 indicates contraction in the sector.
“Canada’s manufacturing economy continued to struggle in the face of tariffs and the ongoing uncertainty related to future trade policies,” Paul Smith, economics director at S&P Global Market Intelligence, said in a statement.
“A lack of new orders underpinned the latest downturn and helped to explain the steepest reduction in production since the height of the pandemic in the spring of 2020.”
International orders were particularly weak, with the New Export Orders Index falling to 40.2 from 42.0 in May. The output measure was at 42.6, down from 45.2, posting its lowest level since May 2020.
