The Canadian manufacturing sector stagnated in March, with a decline in output and increased input costs due to U.S. tariffs and uncertainty surrounding the Middle East war. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) fell to 50.0 from 51.0 in February, marking the lowest level in three months. The output index dropped to 49.6 from 50.9 in March and new orders were down modestly, partly due to tariffs with the US. Higher fuel prices and tariffs also contributed to increased costs. The future output index fell to 55.4 from 57.5 in February and the input price index edged up to 59.2 from 59.1 in February.