FX.co ★ Canada Services PMI Hits Five-Month Low

The S&P Global Canada Services PMI experienced a decline in November, reaching 44.3, down from October's 50.5 and marking its lowest point since June. This drop reflects weakened demand amidst increasing economic uncertainty. Notably, new business witnessed a significant decline, and export orders experienced their most pronounced decrease in seven months. Businesses exhibited growing pessimism, with future activity expectations falling to a five-month low, significantly lagging behind the usual trend. Employment also saw a decrease for the third consecutive month, representing the most significant reduction since mid-2020, as companies grappled with cost pressures and increased wage expenses. Although input price inflation eased to a three-month low, it remained elevated due to rising wages and tariff-related cost increases on goods like food and metals. On the other hand, selling prices saw only a slight increase, with output price inflation reaching a seven-month low.