Canada’s providers PMI rises to 19-month excessive in November

By Fergal Smith

TORONTO (Reuters) – Canada’s providers economic system expanded for a second straight month in November as corporations added employees, however incoming new work was subdued and the specter of U.S. tariffs might but damage sentiment, S&P International’s Canada providers PMI information confirmed on Wednesday.

The headline enterprise exercise index rose to 51.2 from 50.4 in October, posting its highest stage since April 2023. A studying above 50 reveals growth within the sector.

“November proved to be a comparatively constructive month for the Canadian service sector,” Paul Smith, economics director at S&P International Market Intelligence, stated in an announcement.

“Nevertheless, the upturn was restricted to some extent by nearly no progress in new enterprise volumes, and corporations stay involved over the underlying energy of enterprise circumstances regardless of the stimulative influence on financial exercise of decrease rates of interest.”

The employment index rose to a 14-month excessive of 51.4 from 50.7 in October, whereas the brand new enterprise measure was at 50.1, down from 50.5, held again by a steeper decline in new export enterprise.

The Financial institution of Canada has lower its benchmark rate of interest by one and 1 / 4 proportion factors since June, decreasing borrowing prices to three.75%. Traders count on additional easing at a coverage resolution on Dec. 11.

“It is price noting that the most recent survey passed off earlier than U.S. President-elect Trump’s announcement of modifications to U.S. commerce coverage in 2025. Though the scope and nature of tariffs on Canadian items and providers stays unsure at this stage, already fragile confidence and financial progress is more likely to be hit once more within the coming months,” Smith stated.

U.S. President-elect Donald Trump has pledged to impose a 25% tariff on imports from Canada and Mexico. Canada sends about 75% of its exports to america.

The S&P International Canada Composite PMI Output Index, which captures manufacturing in addition to service sector exercise, rose to 51.5 final month from 50.7 in October, its highest stage since Might 2022.

Information on Monday confirmed that Canada’s manufacturing PMI rose to a 21-month excessive of 52.0 in November.