This is the first positive reading in the Canadian services PMI since last November, though it wasn’t exactly robust and the commentary in the report was poor:<\/p>\n
Latest prices data showed another round of steeply rising
\noperating expenses, although competitive pressures meant
\nthe degree of cost pass through to clients remained relatively
\nsubdued.Suppliers were reported to
\nbe raising their charges Staffing levels
\nalso fell as firms generally chose not to replace any leaversnew business declined for an eleventh month
\nrunningBacklogs of work
\ndeclined steeply whilst confidence in the outlook was again
\nbelow trend<\/p>\n
Paul Smith, Economics Director at S&P Global Market
\nIntelligence, said:<\/p>\n
\u201cOctober\u2019s survey data signalled a return to (admittedly
\nmarginal) growth of Canada\u2019s service sector amid some
\nevidence of a stabilisation in the business environment.
\nHowever, whilst welcome, growth realistically failed
\nto make up for the sustained period of contraction
\nseen through much of 2025 and should be viewed in
\nthe context of the continued uncertainty and client
\nhesitancy that still plagues market demand.
\n\u201cPolitical and economic uncertainty, especially in
\nrelation to trade policies, also continues to dominate
\nthe outlook with confidence amongst firms remaining
\nsub-par in October. That helped to explain why
\ncompanies were again reluctant to replace any leavers,
\nespecially given evidence of continued spare capacity
\nin the sector.
\n\u201cAgainst this backdrop of soft employment and
\neconomic activity trends, and with selling price
\ninflation remaining below trend, the latest PMI data
\nonce again provide a timely reminder of why the Bank
\nof Canada loosened monetary policy again last week.\u201d<\/p>\n
The inflation commentary should make the Bank of Canada anxious. If they’re forced to reverse course and hike rates, it would certainly plunge the economy into a recession.<\/p>\n","protected":false},"excerpt":{"rendered":"This is the first positive reading in the Canadian services PMI since last November, though it wasn’t exactly…\n","protected":false},"author":2,"featured_media":120034,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-120033","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/120033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=120033"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/120033\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/120034"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=120033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=120033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=120033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}