The Ivey Business School Purchasing Managers Index (PMI), measuring Canada’s
economic activity, surged 10.8 points to 60.1 in January 2023 from an upwardly
revised 49.3 (from 33.4) in December 2022, pointing to a sharp expiation in the private sector’s activity
after one-month contraction. That was the highest reading since May 2022 (61.9).
A reading above 50 signals
expansion, while a reading below 50 indicates contraction.
Economists had forecast the indicator to come in at 42.3 in January.
The headline indicator’s sub-indexes
performance last month. The deliveries indicator jumped by 3.2
points to 52.3, while the employment gauge increased by 1.0 point to 60.5. At
the same time, the inventories measure declined 1.2 points to 52.7, and the prices
index plunged 3.9 points to 63.6, its lowest level since October 202 (63.0).