FX.co ★ Canada Services Activity Contracts for Fifth Straight Month

The S&P Global Canada Services PMI Business Activity Index slipped to 48.1 in October 2026 from 48.3 in September, remaining below the 50.0 no-change threshold for a fifth straight month and indicating a continued contraction in activity. The decline in business activity was mirrored by a comparable fall in new orders. Firms pointed to an uncertain economic environment, constrained client budgets, and softer market conditions as key factors weighing on sales. Tariffs continued to suppress demand, particularly for exports, which registered their sharpest decline since November 2025. At the same time, uncertainty over Canada–US trade relations, tariff policy, and the war in Iran further undermined business confidence, which fell from September levels and remained historically subdued.