The S&P Global Canada Composite PMI declined to 47.8 in August 2026 from 49.7 in July, marking the lowest level since March, primarily driven by weakeness in the service sector, amid escalating tensions with the US and in the Middle East. Business confidence in the sector over future activity fell to its lowest since June 2025, with rising prices also seen as a threat to future business performance. The weakness from services offseted growth in manufacturing output for a fifth consecutive month. Input price inflation softened over the month, although remaining elevated with fuel and energy prices remaining volatile. Employment was broadly unchanged.