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TSX ends down 0.2% at 22,988.28

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Canada's services economy contracts in August

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Energy sector falls 1.5%

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Consumer discretionary ends 1.6% lower

(Updates at market close)

By Fergal Smith

Sept 5 (Reuters) - Canada's main stock index ended lower

for a third straight day on Thursday, as the recent decline in

oil prices weighed on energy shares and investors awaited U.S.

employment data for potential signs of an economic slowdown.

The Toronto Stock Exchange's S&P/TSX composite index

ended down 52.48 points, or 0.2%, at 22,988.28, adding

to its declines on Tuesday and Wednesday.

"Equities are struggling for direction ahead of a key (U.S.)

jobs report," said Angelo Kourkafas, a senior investment

strategist at Edward Jones.

"There are some growth concerns ... We are back into the

mode of bad news being bad news and good news being good news

and that's the lens through which the market and investors are

going to interpret tomorrow's data."

The U.S. and Canadian employment reports for August are due

for release on Friday. A step-down in U.S. hiring in July

rattled investors and fanned concerns that a recession was

stalking the economy.

Data on Thursday showed that Canada's services economy

contracted for a third straight month in August as firms

employed less workers and wildfires contributed to a slowdown in

new business.

The energy sector fell 1.5% as the price of oil held

near its lowest level this year. Industrials were also a drag,

falling 0.8%, and consumer discretionary ended 1.6% lower.

In contrast, consumer staples added 0.6% and heavily

weighted financials were up 0.2%.

The sector was helped by a gain of 1.4% for the shares of

Canadian Imperial Bank of Commerce ( CM ) as the lender named

Jon Hountalas vice chair of North American banking.