Canadian Economic Activity Declines in January

TORONTO (Reuters) – Canadian economic activity contracted for the first time in five months in January, according to the Ivey Purchasing Managers Index (PMI) data released on Thursday.

The seasonally adjusted index decreased to 47.1 from 54.7 in December, falling below the 50 threshold for the first time since August. A reading below 50 indicates a decrease in economic activity.

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

The employment gauge fell to an adjusted 52.9 from 55.3 in December, while the prices index reached 64.4, its highest level since December 2023.

The unadjusted PMI increased to 46.2 from 44.3.