According to data released on Tuesday, activity in the Canadian service sector heated up in the last month of 2025, but the industry is still in a contraction range due to the continued decline in new businesses and the level of employment being cut again. The S&P Global Canadian Services Purchasing Managers' Index rose to 46.5 in December. This marks a recovery after a sharp decline last month, when the index slipped to 44.3 in November. Apart from the moderate growth recorded in October, the service sector index fell below 50 for the whole of last year, a watershed of boom and bust. Paul Smith, financial intelligence and economics director of S&P Global Markets, said, “The latest data has put an end to an overall difficult year. The spillover effects of tariffs and trade policies on confidence and activity have put heavy pressure on the economy.” Smith said Canadian service providers continue to report a challenging market environment characterized by ongoing uncertainty and customer reluctance to spend.

According to data released on Tuesday, activity in the Canadian service sector heated up in the last month of 2025, but the industry is still in a contraction range due to the continued decline in new businesses and the level of employment being cut again. The S&P Global Canadian Services Purchasing Managers' Index rose to 46.5 in December. This marks a recovery after a sharp decline last month, when the index slipped to 44.3 in November. Apart from the moderate growth recorded in October, the service sector index fell below 50 for the whole of last year, a watershed of boom and bust. Paul Smith, financial intelligence and economics director of S&P Global Markets, said, “The latest data has put an end to an overall difficult year. The spillover effects of tariffs and trade policies on confidence and activity have put heavy pressure on the economy.” Smith said Canadian service providers continue to report a challenging market environment characterized by ongoing uncertainty and customer reluctance to spend.