
Canada's Services Sector Faces Setbacks Due to Postal Strike in December 2024
Canada's services economy experienced a downturn in December 2024, marking its first contraction in three months. This decline was primarily attributed to a postal workers' strike that impacted business activity and increased the backlog of work. As reported by Reuters, the headline business activity index fell significantly to 48.2 from November's 51.2, dropping below the critical 50.0 threshold that distinguishes between growth and contraction.
S&P Global's Paul Smith emphasized the role of postal strikes in exacerbating the situation but also pointed out underlying demand challenges, with clients adopting a cautious approach towards new work commitments as the year concluded. The strike, which persisted for a month, ended in mid-December following intervention by the country's labor relations board.
The downturn in services offset the gains recorded in the manufacturing sector. According to IndexBox data, while Canada's manufacturing PMI reached a 22-month high at 52.2, buoyed by U.S. clients stocking up ahead of anticipated trade tariffs, the new business index for services fell to 46.4 from the previous month's 50.1, while new export business hit its lowest level since December 2020 at 39.7.
Concerns over economic slack persist, as the outstanding business index hit a four-year low, signaling significant excess capacity in the services sector. This has drawn the attention of the Bank of Canada, which recently reduced its benchmark interest rate by half a percentage point to 3.25%, aiming to stimulate economic activity.
Despite the postal strike's resolution, the services sector faces ongoing challenges. The S&P Global Canada Composite PMI Output Index reflected these difficulties, slipping to 49.0 in December, evidencing the broader issues within the Canadian economy as 2024 came to a close.
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1. INTRODUCTION
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- REPORT DESCRIPTION
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2. EXECUTIVE SUMMARY
A Quick Overview of Market Performance
- KEY FINDINGS
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3. MARKET OVERVIEW
Understanding the Current State of The Market and Its Prospects
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4. MOST PROMISING PRODUCT
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The Largest Exporters on The Market and How They Succeed
- EXPORTS FROM 2012–2024
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10. PROFILES OF MAJOR PRODUCERS
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11. COUNTRY PROFILES
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- China
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- Germany
- United Kingdom
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- Brazil
- Italy
- Russian Federation
- India
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- Spain
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- Indonesia
- Netherlands
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- Saudi Arabia
- Switzerland
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LIST OF TABLES
- Key Findings In 2024
- Market Volume, In Physical Terms, 2012–2024
- Market Value, 2012–2024
- Per Capita Consumption, By Country, 2018–2024
- Production, In Physical Terms, By Country, 2012–2024
- Imports, In Physical Terms, By Country, 2012–2024
- Imports, In Value Terms, By Country, 2012–2024
- Import Prices, By Country Of Destination, 2012–2024
- Exports, In Physical Terms, By Country, 2012–2024
- Exports, In Value Terms, By Country, 2012–2024
- Export Prices, By Country Of Origin, 2012–2024
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LIST OF FIGURES
- Market Volume, In Physical Terms, 2012–2024
- Market Value, 2012–2024
- Consumption, By Country, 2024
- Market Volume Forecast to 2030
- Market Value Forecast to 2030
- Products: Market Size And Growth, By Type
- Products: Average Per Capita Consumption, By Type
- Products: Exports And Growth, By Type
- Products: Export Prices And Growth, By Type
- Production Volume And Growth
- Exports And Growth
- Export Prices And Growth
- Market Size And Growth
- Per Capita Consumption
- Imports And Growth
- Import Prices
- Production, In Physical Terms, 2012–2024
- Production, In Value Terms, 2012–2024
- Production, By Country, 2024
- Production, In Physical Terms, By Country, 2012–2024
- Imports, In Physical Terms, 2012–2024
- Imports, In Value Terms, 2012–2024
- Imports, In Physical Terms, By Country, 2024
- Imports, In Physical Terms, By Country, 2012–2024
- Imports, In Value Terms, By Country, 2012–2024
- Import Prices, By Country, 2012–2024
- Exports, In Physical Terms, 2012–2024
- Exports, In Value Terms, 2012–2024
- Exports, In Physical Terms, By Country, 2024
- Exports, In Physical Terms, By Country, 2012–2024
- Exports, In Value Terms, By Country, 2012–2024
- Export Prices, 2012–2024