Canada Services Activity Contracts

2026-07-06 13:58 By Isabela Couto 1 min. read

Canada's S&P Global Services PMI fell to 47.1 in June 2026 from 50.6 in May, signalling a contraction in the services sector and the steepest decline in activity since February.

Business activity weakened as new orders fell for a second straight month, with firms citing high prices and geopolitical uncertainty as key factors weighing on domestic and foreign demand.

Meanwhile, employment increased marginally as companies added staff to expand capacity, helping reduce backlogs of work at the fastest pace since January.

On the price front, input cost inflation eased sharply from May's four-year high but remained elevated due to higher energy, fuel, and wage costs.

Selling price inflation also moderated to a three-month low as weaker demand limited firms' pricing power.

Business confidence deteriorated for a second consecutive month, falling to its lowest level since November 2025.



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Canada Services Activity Contracts
Canada's S&P Global Services PMI fell to 47.1 in June 2026 from 50.6 in May, signalling a contraction in the services sector and the steepest decline in activity since February. Business activity weakened as new orders fell for a second straight month, with firms citing high prices and geopolitical uncertainty as key factors weighing on domestic and foreign demand. Meanwhile, employment increased marginally as companies added staff to expand capacity, helping reduce backlogs of work at the fastest pace since January. On the price front, input cost inflation eased sharply from May's four-year high but remained elevated due to higher energy, fuel, and wage costs. Selling price inflation also moderated to a three-month low as weaker demand limited firms' pricing power. Business confidence deteriorated for a second consecutive month, falling to its lowest level since November 2025.
2026-07-06
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