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Canada’s services economy contracts in June, hitting four-month low

Globe and Mail - Business - 2026-07-06

AI Summary

Canada's services economy contracted in June, reaching a four-month low due to geopolitical uncertainty and elevated prices impacting demand. The services Business Activity Index fell below 50, indicating a contraction, while new business and outlook confidence also declined. This slowdown in the services sector, alongside persistent high food inflation, contributed to a dip in the overall composite PMI.

Key takeaways

  • Services economy contracted in June.
  • Geopolitical uncertainty and high prices dampened demand.
  • Composite PMI declined due to services sector weakness.

What this could mean for homebuyers

Mortgage news can affect fixed rates, variable-rate expectations, affordability, and buyer timing. Use this article as context, then compare today's rates or ask the AI Mortgage Advisor how it applies to your situation.

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