Canadian Economic Activity Declines

TORONTO (Reuters) – Canadian economic activity contracted for the first time in 13 months in August due to slower employment growth and rising price pressures, according to Ivey Purchasing Managers Index (PMI) data released on Friday.

The seasonally adjusted index dropped to 48.2 from 57.6 in July, marking the first time since July 2023 that it fell below the 50 threshold, indicating a decrease in activity.

The Ivey PMI measures month-to-month changes in economic activity as reported by a panel of purchasing managers from across Canada.

The employment gauge decreased to an adjusted 54.7 from 56.1 in July, while the prices index rose to 63.4, up from 59.2, representing its highest level since May.

Additionally, the unadjusted PMI fell to 50.3, its lowest level this year, down from 55.3.