TORONTO, Jan 6 Reuters Canada39;s services economy deteriorated for the first time in three months in December as a postal workers39; strike weighed on activity and work outstanding tumbled, SP Global39;s Canada services PMI data showed on Monday.

The headline business activity index fell to 48.2 from 51.2 in November, moving below the 50.0 nochange mark for the first time since September. A reading below 50 shows a contraction in activity.

Canada39;s services economy ended 2024 on a subdued note, Paul Smith, economics director at SP Global Market Intelligence, said in a statement.

The downturn was somewhat exacerbated by postal strikes, although underlying demand was nonetheless reported to have disappointed, with clients said to be cautious and unwilling to commit to new work as 2024 ended.

A monthlong strike by Canadian postal workers ended in midDecember after the country39;s labor relations board ordered an end to the work stoppage.

The new business index fell to 46.4 from 50.1 in November and the measure of new export business was at 39.7, its lowest level since December 2020.

U.S. Presidentelect Donald Trump has threatened to impose a 25 tariff on all imports from Canada.

A high degree of excess capacity was also apparent in the services economy, with firms easily able to keep on top of their workloads according to the latest PMI data, Smith said.

The outstanding business index fell to its lowest level in four years at 44.6. The level of economic slack…