Canadian Manufacturing Sector: A Promising Start to 2026 (2026)

Canada's manufacturing sector shows signs of stabilization in January 2026. Output levels held steady, and employment figures improved, indicating a boost in manufacturers' confidence. Despite a slight decline in new orders, the rate of decrease was the lowest in a year. However, tariffs continued to impact negatively, causing a drop in exports, particularly to the United States. This led to a significant rise in input costs, forcing manufacturers to increase their own charges to the highest level since March 2025. The sector's performance remains under pressure, with tariffs and input costs posing ongoing challenges.