Key facts
- The S&P Global Canada services Business Activity index was 48.1 in October, below the 50 no-change mark for a fifth month.
- The new business index dipped to 48.0 from 48.5 in September, S&P Global said.
- The input prices index rose to a three-month high of 63.9 from 62.2 in September.
- The prices charged measure was unchanged on the month at 53.4.
- The future activity index fell to 57.7 from 61.4 in September, S&P Global said.
- The S&P Global Canada Manufacturing PMI fell to 49.6 in October from 51.5 in September.
Canada's services economy contracted for a fifth straight month in October, with the headline Business Activity index edging lower to 48.1 from 48.3 in September, S&P Global said on November 4, 2026. A reading below 50 indicates contraction, and the index has stayed below that mark since June.
New business dipped to 48.0 from 48.5 in September, and new export business posted its steepest decline since November 2025, S&P Global said. The firm said sentiment remained historically subdued, with the future activity index falling to 57.7 from 61.4.
"The performance of Canada's service sector remained subdued in October," Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. "Ongoing economic uncertainty, linked to the Canada-US trading relationship and rising prices, continued to undermine demand and confidence."
Canada and the United States have imposed billions of dollars in tariffs on each other in recent months, and the US is the destination for about 70% of Canada's exports, according to the report. Smith said inflation remained elevated and was driven higher by fuel surcharges, rising transportation costs and tariffs, while efforts to pass these on to clients were again limited by weak demand.
The input prices index rose to a three-month high of 63.9 from 62.2 in September, while the prices charged measure was unchanged at 53.4. The S&P Global Canada Composite PMI declined to 48.1 from 48.7, remaining below 50 for a fifth month in a row.
Data released on November 2 showed the S&P Global Canada Manufacturing PMI declined to 49.6 in October from 51.5 in September, the first move below 50 in 2026.