FX.co ★ Canada Services PMI Falls to Six-Month Low

Canada’s S&P Global Services PMI fell to 46.8 in August 2026 from 49.1 in July, marking a third consecutive monthly contraction in service-sector activity and the sharpest decline since February. Both activity and new business volumes shrank at faster rates as persistent uncertainty left clients hesitant to commit to new contracts. Business confidence for the year ahead slipped to its lowest level in over a year, with rising prices also viewed as a threat to future performance.

Tariffs and trade tensions with the US, together with the conflict in the Middle East and the resulting volatility in international energy prices, weighed on demand from domestic and foreign clients alike. New export business continued to decline at a solid, though somewhat slower, pace in August. At the same time, subdued and highly competitive demand constrained firms’ ability to raise selling prices. Employment was broadly unchanged over the latest survey period, following two months of modest growth.