Canada’s S&P Global Services PMI fell to 46.8 in August from 49.1 in July, marking its lowest level since February and the steepest contraction in six months. Activity and new business volumes declined at a faster rate as clients remained reluctant to commit to new contracts amid escalating trade tensions with the U.S. and the ongoing conflict in the Middle East. The new business measure was at 46.1, its lowest level since January and down from 48.4 in July. The U.S. imposed new 50% tariffs on $20 billion of Canadian imports on August 22 after talks collapsed. Business confidence about the year ahead dropped to its lowest level in over a year, with rising prices viewed as a threat to future performance. The future activity index fell to 56.4 from 57.5. The S&P Global Canada Composite PMI dropped to 47.8 from 49.7 while the manufacturing PMI eased to 53.0 from 53.5 but indicated expansion for the fifth straight month. New export business fell at a solid pace though slower than anticipated. Weak demand limited firms’ ability to raise selling prices. Employment remained little changed after two months of modest growth.