Canada’s services economy moved back into contraction in June as a decline in new business weighed on the sector’s performance even as inflation pressures cooled, S&P Global Canada services PMI data showed on Thursday.
A reading below 50 signals deterioration in activity. The reading for May was the first time in a year that the index had been above the 50 threshold. One bit of “good news” in the data was a slowdown in both input and output price inflation, which could contribute to the Bank of Canada’s confidence that inflation pressures are contained, Smith said.The prices charged index fell to 50.9 last month from 55.4 in May and the measure of input prices was at 56.2, down from 60.0, marking its lowest level since February 2021.
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