Canada’s Ivey PMI shows first contraction in 11 months

FILE PHOTO: A truck moves past stacked shipping containers at the Port of Montreal
FILE PHOTO: A truck moves past stacked shipping containers at the Port of Montreal in Montreal, Quebec, Canada, May 17, 2021. REUTERS/Christinne Muschi

January 7, 2022

TORONTO (Reuters) – Canadian economic activity contracted in December for the first time in 11 months, Ivey Purchasing Managers Index (PMI) data showed on Friday.

The seasonally adjusted index fell to 45.0 from 61.2 in November. It was the first time the PMI was below the 50 threshold indicating a decrease in activity since January 2021 and the lowest level since May 2020.

The index measures the month to month variation in economic activity as indicated by a panel of purchasing managers from across Canada.

The gauge of employment fell to an adjusted 50.0 from 54.5 in November, while the inventories index fell to 49.6 from 55.0.

The unadjusted PMI fell to 51.1 from 61.2.

(Reporting by Fergal Smith; Editing by Chizu Nomiyama)