Story perspectives

Canada's Services Economy Shows Signs of Recovery in October

11/6/2025

Summary

Story summary

Canada’s services economy expanded in October 2025 for the first time in 11 months, with the Business Activity Index at 50.5, up from 46.3 in September 2025.
Nevertheless, the contraction persisted in 2025, with the new business index at 48.8 and employment at 48.5.
The S&P Global Canada Composite Purchasing Managers’ Index (PMI) rose to 50.3, signaling a marginal recovery across services and manufacturing amid ongoing political and trade uncertainties.

History

Historical Context

The 2008 global financial crisis severely impacted Canada, contracting its GDP by 2.9%. In response, the Bank of Canada lowered interest rates to 0.25% to stimulate recovery. Today, Canada's services economy shows signs of resilience, with a Business Activity Index of 50.5, reflecting ongoing recovery amidst trade uncertainties and echoing past recovery efforts following economic downturns.

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Story summary

Canada’s services economy expanded in October 2025 for the first time in 11 months, with the Business Activity Index at 50.5, up from 46.3 in September 2025.
Nevertheless, the contraction persisted in 2025, with the new business index at 48.8 and employment at 48.5.
The S&P Global Canada Composite Purchasing Managers’ Index (PMI) rose to 50.3, signaling a marginal recovery across services and manufacturing amid ongoing political and trade uncertainties.

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