The S&P Global Canada Services PMI fell to 44.3 in June 2025 from 45.6 in May 2025, pointing to a quicker pace of decline in the services sector. This is the seventh consecutive month of contraction, with activity and new business both continuing to fall amid widespread market uncertainty, especially uneasiness related to US trade policy and tariffs noted.
Meanwhile, employment rose modestly for the second month running, the best performance since last November. On the price front, input price inflation accelerated, reaching its highest level since October 2022, driven by tariffs, higher supplier prices and increased labor expenses. In response, service providers increased their own selling prices at the highest level since May 2024. Finally, business confidence reached a three-month low as uncertainty over US trade policies continued to limit optimism. The recent change in the Canadian government and broader economic instability were also noted as factors weighing on confidence.
