Canada's Services Sector Contracts for Fourth Consecutive Month in December
Canada's services sector saw continued contraction in December, with a PMI of 46.5 marking the fourth month of job cuts and ongoing new business decline. Trade uncertainty and client spending hesitancy are key contributors to the economic pressure.
Insights:
Canada's services sector, the largest component of the country's economy, continued its contraction in December 2024, with the S&P Global's Canada services PMI Business Activity Index registering at 46.5. This figure, although an improvement from November's 44.3, remains below the critical 50 threshold that separates expansion from contraction. The sustained downturn highlights the ongoing economic pressure facing the sector amid trade uncertainty and weak business confidence.
