Canada October Services PMI Slips for Fifth Month in A Row Amid Weak Demand, S&P Global Says

09:55 AM EST, 11/04/2026 (MT Newswires) -- Canada's services sector recorded its fifth consecutive monthly contraction in October, as subdued demand, economic uncertainty and mounting cost pressures continued to weigh on business activity, according to S&P Global in a Wednesday note. The headline Services PMI Business Activity Index edged down to 48.1 in October from 48.3 in September, remaining below the 50.0 mark that separates growth from contraction, wrote S&P Global in the note. New business declined in October as economic uncertainty, tighter client budgets and weak market conditions weighed on demand, said S&P Global. US Tariffs continued to undermine incoming orders, with export business falling at its fastest pace since November 2025. Input cost inflation accelerated to a three-month high, driven by rising fuel and transportation expenses, wage pressures and tariffs. However, subdued demand and competitive pressures limited firms' ability to pass on higher costs, keeping output price inflation relatively subdued, it added. Business confidence weakened further amid ongoing uncertainty surrounding Canada-US trade relations, tariffs and the conflict in Iran. Service providers reduced employment for a second consecutive month, although the pace of job losses remained "modest," S&P Global said.