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The S&P Global Canada Manufacturing PMI rose to 51.1 in October of 2024 from 50.4 in the previous month, the second consecutive expansion in Canadian factory activity after 17 consecutive monthly contractions. Output rose for the first time in over one year, benefitting from a marginal increase in new contracts and the 27th consecutive month of clearance in work backlogs. The improvement in new order levels was solely driven by the domestic market, as new export business fell for the 14th straight month. In the meantime, employment levels increased as manufacturers aimed to increase capacity ahead of the next year. On the price front, input cost inflation softened from the previous month, allowing output charge inflation to slow to its lowest in five months. Looking forward, firms continued to show confidence in their business outlook, although many remained cautious on purchasing levels.