It’s the first bit of macroeconomic tidings for the calendar year, and it’s a bit on the negative side.
The IVEY School of Business’ Purchasing Managers Index showed Thursday Canadian economic activity contracted in December for the first time in seven months as measures of employment and supplier deliveries weakened.
The seasonally-adjusted index fell to 46.7 from 52.7 in November. It was the first time since May that the PMI was below the 50 threshold, indicating a decrease in activity.
The Ivey PMI measures the month-to-month variation in economic activity as indicated by a panel of purchasing managers in the public and private sectors across Canada.
The gauge of employment fell to an adjusted 45.8 from 48.1 in November, while the supplier deliveries index slipped to 30.1, its lowest since April, from 34.3.
The unadjusted PMI rose to 53.9 from 52.4.