Canada Services PMI Improves but Stays in Contraction

2026-01-06 14:44 By Isabela Couto 1 min. read

The S&P Global Canada Services PMI rose to 46.5 in December 2025 from 44.3 in November but remained in contraction territory.

Apart from growth in October, the index stayed below the 50.0 no-change mark throughout 2025.

Business activity fell as new work volumes fell for a thirteenth consecutive month, amid subdued demand and clients’ reluctance to commit to contracts.

New export business remained weak, posting another sharp monthly drop.

With activity and new orders under pressure, service providers continued to cut employment mainly through the non-replacement of leavers, marking the fourth straight month of job reductions.

Despite softer demand, wage costs kept operating expenses elevated, prompting firms to raise selling prices for the eighth consecutive month.

Inflation edged up but remained below earlier 2025 levels.

Looking ahead, firms were optimistic about activity, though confidence stayed below its historical average amid uncertainty over tariffs and government policies.



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