Canada’s services economy showed a further loss of momentum at the start of 2026, with the S&P Global Services PMI edging down to 45.80 in January 2026 from 46.50 in December 2025. The latest reading, updated on 4 February 2026, remains firmly below the 50.0 threshold that separates expansion from contraction, signaling another month of deterioration in activity.
On a month-over-month comparison basis, January’s print indicates that the pace of contraction in Canada’s services sector has intensified relative to December. The previous month’s reading of 46.50 already reflected a weakening environment versus November, and the fresh decline underscores persistent headwinds facing service providers.
The back-to-back sub-50 readings highlight ongoing pressure on one of the key engines of Canada’s economy, suggesting that softness in services has carried over into the new year. Market participants and policymakers are likely to watch upcoming PMI releases closely for signs of stabilization or further weakening in the sector.
