Canada Services Sector Returns to Growth

2026-06-04 07:04 By Joana Taborda 1 min. read

The S&P Global Canada Services PMI increased from 49.2 in April to 50.6 in May 2026, indicating renewed growth in the services sector after seven months of contraction and the strongest performance since November 2024.

However, it was limited by a net reduction in new business volumes as economic uncertainty, especially in relation to the conflict in the Middle East, was weighing on market activity.

This was the case for both domestic and international clients.

Meanwhile, employment numbers were reduced marginally in response.

Latest data also showed a noticeable acceleration of input price inflation, with costs rising at their fastest rate for four years on the back of increased fuel and wage expenses.

Service providers raised their own selling prices, with inflation the highest since July 2023.



News Stream
Canada Services Sector Returns to Growth
The S&P Global Canada Services PMI increased from 49.2 in April to 50.6 in May 2026, indicating renewed growth in the services sector after seven months of contraction and the strongest performance since November 2024. However, it was limited by a net reduction in new business volumes as economic uncertainty, especially in relation to the conflict in the Middle East, was weighing on market activity. This was the case for both domestic and international clients. Meanwhile, employment numbers were reduced marginally in response. Latest data also showed a noticeable acceleration of input price inflation, with costs rising at their fastest rate for four years on the back of increased fuel and wage expenses. Service providers raised their own selling prices, with inflation the highest since July 2023.
2026-06-04
Canada Services Activity Falls Less in April
Canada’s S&P Global Services PMI Business Activity Index rose to 49.2 in April from 47.2 in March, but remained below the 50.0 threshold for a sixth straight month. The sector showed signs of stabilization, with activity declining only marginally and at the slowest pace in six months. Firms increased staffing levels for the first time since August 2025, while business confidence climbed to a one-and-a-half-year high. However, concerns over the Middle East conflict and tariffs persisted, with firms reporting higher operating costs. Selling prices rose at the fastest pace in two years, reflecting mounting cost pressures.
2026-05-05
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