Canada's services PMI shows sector shrinking for fifth straight month
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Patrons are served at Le Violon restaurant in Montreal, Quebec, Canada, June 3, 2026. REUTERS/Nasuna Stuart-Ulin
By Fergal Smith
TORONTO, Nov 4 (Reuters) - Canada's services economy contracted for a fifth straight month in October as trade uncertainty and rising prices weighed on activity, S&P Global's Canada services PMI data showed on Wednesday.
The headline Business Activity edged lower to 48.1 last month from 48.3 in September, extending a string of sub-50 readings since June. A reading below 50 indicates contraction in the sector.
• “The performance of Canada’s service sector remained subdued in October," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. "Ongoing economic uncertainty, linked to the Canada-US trading relationship and rising prices, continued to undermine demand and confidence."
• The new business index dipped to 48.0 from 48.5 in September as new export business posted the steepest decline since November 2025.
• Canada and the United States have slapped billions of dollars in tariffs on each other in recent months. The US is the destination for about 70% of Canada's exports.
• "Inflation remains elevated and continued to be driven higher by fuel surcharges, rising transportation costs and tariffs, but efforts to pass these on to clients was again limited by a weak demand environment," Smith said.
• The input prices index rose to a three-month high of 63.9 from 62.2 in September, while the prices charged measure was unchanged on the month at 53.4.
• Sentiment remained historically subdued, S&P Global said. The future activity index fell to 57.7 from 61.4 in September.
• The S&P Global Canada Composite Purchasing Managers' Index declined to 48.1 in October from 48.7 in September, remaining below the 50 no-change mark for a fifth month in a row.
• Data on Monday showed that the S&P Global Canada Manufacturing Purchasing Managers' Index declined to 49.6 last month from 51.5 in September, marking the first move below the 50 threshold this year.
(Reporting by Fergal Smith; Editing by Chizu Nomiyama )
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