Canada’s services economy grew in May for the first time in a year as firms saw an increase in new business and hired workers at a faster pace, S&P Global Canada services PMI data showed on Wednesday.
“There was a welcome return to growth in May amid evidence of a more stable demand environment benefiting Canadian service providers,” Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. The new business index rose to 51.8 from 50.0 in April, led by growth for providers of finance and insurance as well as information and communications services, and the employment measure was at 51.2, up from 50.6.
Faced by higher operating expenses, firms sought to protect margins by raising prices but the pace of increase eased.