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The S&P Global Canada Manufacturing PMI rose to 49.5 in August 2024 from 47.8 in July, signaling the softest contraction in operating conditions since March and extending the decline to 16 months. Both output and new orders saw weaker declines, though firms continued to face subdued demand amid geopolitical and economic uncertainties. Employment fell for the second time in three months, with the sharpest decline this year due to cautious hiring. Input cost inflation reached its highest since April 2023, prompting firms to raise output charges to their steepest in nine months. Despite increased input inventories, purchasing activity declined, reflecting lingering concerns over high costs, interest rates, and shipping delays. Confidence remained positive but below trend, with firms hoping for a better economic environment.