- 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.”
This article was written by Adam Button at www.forexlive.com.
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