Canada Services PMI — Key Points
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Steep downturn: November saw the sharpest decline in service-sector activity since June as demand weakened amid ongoing economic uncertainty.
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PMI drops to 44.3: Down from 50.5 in October — the lowest since June and the 11th contraction in the past 12 months, signaling a steep contraction in activity.
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Weak client demand: Decline driven by a lack of new work; clients are taking a “wait-and-see” approach due to uncertainty.
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New business falls: 12th consecutive monthly decline in new business volumes and the steepest contraction since April.
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Export orders weaken: New export orders fell at the fastest rate in seven months.
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Confidence slips: Business sentiment dropped to a five-month low, remaining well below historical trends.
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Employment cut: Staffing levels fell for the third straight month, with the sharpest decline since mid-2020, due to weak demand and cost pressures.
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Excess capacity persists: Outstanding business levels declined sharply, showing spare capacity despite workforce reductions.
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Input costs elevated: Wage increases and tariffs kept input price inflation high, though inflation eased to a three-month low.
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Pricing power limited: Selling prices rose only marginally — the softest increase in seven months — as weak demand and competition limited firms’ ability to pass on costs; some resorted to discounting.
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Margins remain pressured: Rising costs + limited ability to raise prices continue to squeeze profitability.
The USDCAD is bouncing. The low price once again tested the 50% midpoint of the move up from the mid September low to the high price reached in November
