Canada Services Sector Contracts for Fifth Month in October
Key Facts
Canada's services PMI remained in contraction territory at 48.1 in October, signaling a persistent downturn in the sector. Finimize reported that this marks the fifth consecutive month of decline as activity was weighed down by slowing new business and rising costs.
The new business index eased to 48.0 while input prices reached a three-month high according to S&P Global. This weakness in the services sector follows a Manufacturing PMI reading of 49.6 on November 2, 2026, and a 0.1% contraction in monthly Gross Domestic Product reported for September.
The market is awaiting Canadian employment change data and the unemployment rate scheduled for release on November 6, 2026, alongside the Ivey PMI due on the same day.
Latest Updates · 1
- Notable·
Update: Official data showed that Canada's payroll employment decreased by 49,600 jobs in August 2026. Meanwhile, job vacancies remained stable at 507,200 during the same period, reflecting additional pressure on the labor market alongside the services sector contraction.