- 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.”
This article was written by Adam Button at www.forexlive.com.
