Canada May S&P Global services PMI 45.6 vs 41.5 prior

• Composite index 45.5 vs 41.7 prior
• Confidence amongst service providers improved during May to its highest level since January.
• Job losses were recorded for four straight months ahead of this data point but this month showed 'marginal' growth
• confidence showed some improvement compared to earlier in the year
• Latest data indicated an acceleration in input price inflation

Paul Smith, Economics Director at S&P Global Market Intelligence, said: “Canada’s service sector continued to struggle in the face of ongoing tariff and residual political uncertainty during May, with activity and new business volumes again declining markedly. Panellists reported hesitancy in committing to new work, with the unknown path of international trade policies and tariffs remaining a prevalent theme. “That said, there are some hopes of greater stability in the year ahead, with confidence improving since April and helping to support some marginal employment growth as firms look ahead to higher workloads in the months ahead. “Still, cost pressures remain a concern, with operating expenses rising to a greater degree in May. Wages, tariffs and supplier charges in general were all noted as factors underpinning higher costs. This meant that service providers to raise their own prices to the greatest degree in a year.”