Canada's Services PMI Improves in March

2026-04-06 13:58 By Isabela Couto 1 min. read

Canada's S&P Global Services PMI Business Activity Index rose to 47.2 in March from 46.5 in February — its best reading in five months — though still indicating a solid decline in activity.

New business continued to decline, but the rate of contraction eased to the weakest in five months.

The Middle East war directly impacted operating expenses, with input price inflation accelerating to a nine-month high.

Firms responded by raising charges at a quicker pace than recent months.

Wage costs increased despite average staffing reductions.

Employment fell for the seventh consecutive month, though only modestly and at the weakest rate in the current downturn.

Looking ahead, service providers signaled higher confidence in the outlook, with sentiment reaching its highest level in six months.



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Canada's Services PMI Improves in March
Canada's S&P Global Services PMI Business Activity Index rose to 47.2 in March from 46.5 in February — its best reading in five months — though still indicating a solid decline in activity. New business continued to decline, but the rate of contraction eased to the weakest in five months. The Middle East war directly impacted operating expenses, with input price inflation accelerating to a nine-month high. Firms responded by raising charges at a quicker pace than recent months. Wage costs increased despite average staffing reductions. Employment fell for the seventh consecutive month, though only modestly and at the weakest rate in the current downturn. Looking ahead, service providers signaled higher confidence in the outlook, with sentiment reaching its highest level in six months.
2026-04-06
Canada Services Sector Contraction Eases in February
The S&P Global Canada Services PMI rose to 46.5 in February 2026 from 45.8 in January, signaling a slower pace of contraction in activity. New orders declined for the 15th consecutive month, though the rate of decline was the weakest since October 2025. With demand still weak, firms either chose not to replace departing workers or resorted to layoffs, pushing employment down for the sixth straight month. Input price inflation continued to ease, reaching its lowest level since September 2024, while output prices rose slightly faster, though still well below input cost levels. Business confidence edged up to its highest since October 2025, fueled by hopes that demand will improve, partly due to upcoming sporting events expected to boost tourism in Canada.
2026-03-04
Canada Service Activity Remains Weak
The S&P Global Canada Services PMI fell to 45.8 in January from 46.5, signalling a third consecutive monthly decline in service sector output. New business volumes contracted for a fourteenth straight month, with the latest drop the steepest since April. New export orders also declined, as some firms cited tariffs as making trade with the US unprofitable. Weak demand led to a sharp fall in backlogs, even as employment declined for a fifth month, though only modestly. Input costs rose sharply, driven by higher supplier prices and tariffs, while competitive pressures and weak demand limited firms’ ability to raise prices. Despite these conditions, business confidence remained positive, supported by expectations of stronger activity and easing trade uncertainty.
2026-02-04