The Ivey Business School Purchasing Managers Index (PMI), measuring
Canada’s economic activity, plunged 16.2 points to 45.0 in December, pointing
to the first decline in the private sector’s activity since January (48.4). A
reading above 50 signals expansion, while a reading below 50 indicates
contraction. Overall, this was the lowest reading since May 2020 (39.1).
The headline indicator’s sub-indexes mostly demonstrated decreases in
December. The employment measure went down 4.5 points to 50, its lowest level
since January (41.5). In addition, the inventories indicator fell 5.4 points to
49.6, dropping into contraction territory, and the supplier deliveries gauge decreased
1.9 points to 27.7. Meanwhile, the prices index rose 2.6 points to 77.6.