Canada's Services Economy Contracts Amid Trade Tensions

Canada's services economy contracted at its steepest pace in six months in August due to rising trade tensions and geopolitical instability, according to S&P Global's Canada services PMI data. The Business Activity Index fell to 46.8 last month from 49.1 in July, marking its lowest level since February.

A reading below 50 indicates contraction in the sector, and Paul Smith, economics director at S&P Global Market Intelligence, stated that 'the underlying health of Canada's service sector continued to suffer in August.'

The new business measure was at 46.1, its lowest level since January, and down from 48.4 in July.