Canada's services PMI shows sector shrinking for fourth straight month
SPY•Canada's services sector contracted for a fourth straight month in September, though the Business Activity Index rose to 48.3 from 46.8 in August. The future activity index reached a five-month high of 61.4, while input prices rose to 62.2.
1. Services activity contracts
Canada's services economy contracted for a fourth straight month in September as tariffs and the war in the Middle East contributed to economic uncertainty, S&P Global data showed. The Business Activity Index rose to 48.3 from 46.8 in August but remained below the 50 mark that indicates contraction.
2. Costs and new business
The new business index was 48.5, below 50 for a fifth consecutive month, and new export business declined at a steeper rate than in August. The input price index rose to 62.2 from 61.7. S&P Global said tariffs and the war in Iran were associated with uncertainty, lower export trade and higher operating expenses.
3. Outlook improves
The future activity index rose to 61.4 from 56.4, a five-month high, as hopes that uncertainty could ease lifted sentiment. The composite PMI rose to 48.7 from 47.8 but remained below 50 for a fourth month.
