Canada services PMI hits 49.20 in April; private sector activity almost flat

S&P Global’s Canada services PMI rose to 49.2 in April from 47.2 in March, while the Composite PMI came in at 49.9 — just below the 50 no-change threshold. The readings point to private-sector activity that is almost flat: services remain in mild contraction despite improvement, and a solid rise in manufacturing output was offset in the aggregate. For markets, the data is mixed — an improvement versus March but still short of expansionary territory — likely to limit Canadian dollar strength and keep policymakers cautious. FX traders monitoring USDCAD may see the release as slightly CAD-negative until a sustained move above 50 is recorded.