The Canadian economy has encountered a significant contraction in the services sector as evidenced by the latest Services Purchasing Managers' Index (PMI) for November 2025. After recording a level of 50.50 in October 2025, the PMI has plummeted to 44.30, marking a steep decline that suggests a contraction in the Canadian services industry.
This abrupt shift in the Services PMI level indicates a substantial decrease in the activity within the sector, highlighting the challenges the industry is currently grappling with. The PMI serves as a critical indicator of business activity in the services sector and any level below 50 signifies a contraction.
The reduction from the previous month's neutral growth benchmark of 50.50 to November's negative territory underscores the headwinds the Canadian services sector is facing. With the latest data updated on December 3, 2025, businesses and policymakers alike will likely scrutinize these figures to address the underlying issues dampening the sector and to develop strategies to stimulate growth in the upcoming months.
