FX.co ★ Canada Services PMI Falls to Three-Month Low

In September 2025, the S&P Global Canada Services PMI decreased to 46.3, dipping further from 48.6 in the previous month. This marks the third consecutive month of contraction, and it is the lowest point observed in the past three months. The downturn was primarily influenced by a shortage of new business, especially from export markets, which impacted overall activity. Additionally, excess capacity led to the most significant decline in outstanding work seen in over five years. For the first time since April, companies reduced staffing levels, attributing this to not replacing departing employees and instigating layoffs. Despite these challenges, optimism for the year ahead reached its highest level since October 2024. Cost pressures increased, largely due to higher staffing and fuel expenses, resulting in the sharpest rise in input prices in three months. Nonetheless, competitive market conditions hindered firms from significantly raising their selling prices.