The S&P Global Canada Services PMI rose to 49.3 in July 2025 from 44.3 in June, pointing to a much softer pace of contraction in the Canadian services sector. This was the eighth consecutive month of decline, but the slowest in the current sequence. Activity and new orders both fell at weaker rates, as firms cited the continued impact of US tariffs and global market uncertainty. On the employment front, job creation was recorded for the third consecutive month, though the increase was marginal and softer than in June. Input price inflation remained sharp due to tariffs and higher wages, yet slowed to the weakest pace in six months and below the series average. In response, service providers raised selling prices at a marked pace for the third month in a row. Finally, business confidence strengthened to a six-month high, supported by hopes for more stable market conditions and new projects, although uncertainty and tariffs continued to weigh on sentiment.