Canada’s services economy deteriorated in July as activity and new business declined, while elevated wage costs contributed to increased inflation pressures, S&P Global Canada services PMI data showed on Tuesday.
“The latest PMI report on the Canadian services economy paints a subdued picture of sector performance, with activity and new business falling again,” Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. The new business index rose to 49.2 from 47.9 in June and the measure of future activity was at 60.4, up from 59.0 in the prior month, notching its first increase since February.
The input prices measure climbed to 58.1 from 56.2 in June. Last week, the BoC cut its benchmark interest rate for the second time in two months, lowering it to 4.5 per cent.