The Ivey Business School Purchasing Managers Index (PMI),
measuring Canada’s economic activity, declined by 11.0 points to 52.0 in May from
an unrevised 63.0 in April. The latest print pointed to the weakest
expansion in the private sector’s activity since a contraction in July 2023.
A reading above 50 signals expansion, while a reading below
50 indicates contraction.
Economists had forecast
the indicator to increase to 65.0 in May.
According to the report, the inventories measure
dropped by 3.7 points to 49.1, returning into the contraction
territory after four months of growth. The deliveries gauge fell by 1.7 points
to 47.9, indicating a decrease in deliveries for
the second month in a row. Meanwhile, the employment index remained unchanged
at 56.4, indicating
continuing growth in employment. The prices indicator jumped
by 1.1 points to 63.5, indicating prices continued to rise in May at the
fastest pace since December 2023.