FX.co ★ Canada’s Services Sector Edges Toward Stabilization as S&P Global PMI Rises in July

Canada’s services economy showed signs of gradual improvement in July 2026, as the S&P Global Services Purchasing Managers’ Index (PMI) rose to 49.10 from 47.10 in June. The latest reading, updated on 06 August 2026, remains below the 50-point threshold that separates expansion from contraction, but indicates that the pace of decline in activity is easing.

On a month-over-month basis, the July increase suggests that conditions in Canada’s services sector are stabilizing compared with the sharper weakness seen in June 2026. The previous month’s reading of 47.10 had signaled a more pronounced contraction relative to May, while the move to 49.10 in July points to an environment that is closer to flat activity.

The comparison framework for the data underscores this shift: the “Actual” figure reflects the change in July relative to June, while the “Previous” captures June’s change versus May. Together, they show a services sector that, while still under pressure, is moving incrementally toward a potential return to growth if the upward trend continues in the coming months.