Canada Services PMI Edges Up to 49.1 but Remains in Decline
The S&P Global Canada Services PMI rose to 49.1 in July but remained below the 50 mark as economic uncertainty and new tariffs depressed market demand. Business confidence dropped to its lowest level since 2025 while input costs rose due to higher energy and fuel expenses.
Insights:
Canada services activity contracted for a second consecutive month in July as the headline Business Activity Index reached 49.1. The reading rose from 47.1 in June but remained below the 50.0 threshold that separates growth from contraction. Persistent economic uncertainty and geopolitical tensions are weighing on domestic demand and business sentiment.
