Canada’s services sector slipped further into contraction in June, with S&P Global’s Purchasing Managers’ Index falling to 44.3 from 45.6 a month earlier. A reading below 50 signals shrinking activity. The broader Composite PMI, which blends services and manufacturing data, declined to 44.0 from May’s 45.5, highlighting widespread weakness across the economy. Paul Smith, economics director at S&P Global Market Intelligence, said lingering uncertainty around U.S. trade policies continued to weigh on demand, particularly from abroad, while operating costs rose at the fastest pace since October 2022. Firms added staff, but hiring was limited largely to part-time roles amid higher labor expenses and a subdued outlook.