- Best reading since June
- Eleventh month in a row below 50
- Prior was 46.4
This survey doesn't get much attention from markets, partly owing to its short life.
Paul Smith, Economics Director at S&P Global Market Intelligence, said:
"Another fall in activity during April reinforced the general underlying weakness that pervades the Canadian services economy. Panellists noted that subdued market conditions, reflective of high interest rates and worries about the outlook, continued to undermine sales.
“But there was some positivity to be found in the survey data. Activity was only down slightly, whilst new business volumes stabilised after a protracted downturn. Companies added to their employment numbers (though only slightly) as they looked to support new projects and sales efforts.
“Inflation rates remain too high, however. Costs are in part being driven up by higher salary demands, whilst firms are raising their own charges at a faster rate. Despite recently exhibiting a more dovish tone, the latest prices data from the PMI survey will perhaps give policymakers a little more food for thought before they embark on their expected loosening of monetary policy in the coming months.”
