S&P Global Canada’s services PMI data shows that while businesses saw some sales and increased hiring in April, the services sector grew slowly overall.

Rising wages contributed to inflationary pressures.

The headline business activity indicator reached a record point since June, rising to 49.3, the longest period in three years.

The new business index improved to 50.0, and employment increased to 50.6. However, inflation rates remain high, with increased wage expectations contributing to costs and businesses raising their own fees more quickly.