According to a survey by the Ivey Business School, seasonally adjusted, the Purchasing Managers Index (PMI) in Canada fell sharply from 57.6 in July to 48.2 in August, well below the market expectation of 55.5, reaching its lowest level since December 2020.
This decline marks the first contraction in the economy after 12 months of steady growth, driven by declines in the Inventory Index (53.6), Employment Index (54.7), and Supplier Delivery Index (44.8). At the same time, price growth accelerated (62.3).
As for the unadjusted PMI, it fell from 55.3 last month to 50.3, reaching its lowest level since December 2022.