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Canada’s services sector showed a further loss of momentum in early autumn, with the S&P Global Services PMI edging down to 48.30 in September 2026 from 49.10 in July, according to the latest data updated on 5 October 2026. The index remains below the 50.0 threshold that separates expansion from contraction, signaling a deepening downturn in service-sector activity.
On a month-over-month basis, the September reading indicates that the pace of contraction has intensified compared with the previous period measured in July. While July’s 49.10 already reflected a marginal decline in output versus the prior month, the move to 48.30 in September underscores mounting pressure on Canada’s services economy, which encompasses key industries such as finance, retail, transportation, and professional services.
The data, compiled by S&P Global, highlight persistent softness in the sector at the close of the third quarter, suggesting that services are providing less support to overall economic growth than earlier in the year. As the PMI remains in negative territory, market participants and policymakers will be watching upcoming releases closely for signs of stabilization or further weakness in the months ahead.