FX.co ★ Canada Services Activity Plunges to Lowest on Record

In March 2025, the S&P Global Canada Services PMI experienced a significant drop to 41.2 from 46.6 in the previous month, marking the fourth consecutive period of contraction in Canada's services sector, and doing so at an extraordinary rate. The decline in new business, exacerbated by concerns over tariffs, led to a pullback in client expenditures. This decreased demand for capacity resulted in slight job reductions, representing the third month in a row of staffing level declines. On the pricing side, operational costs rose considerably, with input price inflation hitting its peak since October 2023, due to increased labor costs and supplier charges. Looking ahead, business confidence fell to its lowest since May 2020, stemming from worries over tariffs and an unpredictable outlook.