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S&P Global Canada Composite PMI rises to 49.7 in July as contraction slows

S&P Global Canada Composite PMI rises to 49.7 in July as contraction slows

Canada's private sector shrank for a second straight month, with services still in contraction, confidence weakening and tariff- and energy-related cost pressures continuing to build.

Fact Check
The Trading Economics July 2026 article 'France Services Activity Revises Slightly Lower' directly confirms the final France S&P Global Services PMI at 49.6 for July 2026 (up from June's 46.8), with improving activity and new orders, weak export demand and employment, and softening price pressures — matching every element of the claim. Corroborating flash-data reports (Reuters/KFGO and Trading Economics composite page) show the same easing-contraction picture. The claim aligns precisely with the final revised figure.
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Summary

Canada's private sector remained in contraction in July 2026, though the pace of decline slowed as the S&P Global Canada Composite PMI rose to 49.7 from 47.9 in June. The reading stayed below the 50 threshold that separates expansion from contraction, marking a second consecutive month of falling business activity. The improvement was driven by stronger manufacturing output, while the services sector continued to contract. Canada's S&P Global Services PMI rose to 49.1 from 47.1 in June, signaling a second straight but milder contraction in services. Output and new orders in the sector declined again, though at a slower pace. Business conditions were weighed down by tariffs and geopolitical tensions, which hurt current activity and the outlook. Business confidence in the services sector fell to its lowest level of 2026, while input cost inflation remained elevated due to tariffs, higher energy and fuel costs linked to the Middle East conflict, and rising labor expenses. Firms continued to raise selling prices despite weak demand, underscoring persistent inflation pressures across the economy.

Terms & Concepts
  • S&P Global Canada Composite PMI: A monthly survey-based index of business activity across Canada's private sector, where readings above 50 indicate expansion and below 50 indicate contraction.
  • S&P Global Services PMI: A monthly survey index tracking business activity in the services sector, with readings below 50 signaling contraction.
  • Input cost inflation: An increase in the expenses businesses face for labor, energy, materials and other operating inputs.