Canada's Ivey PMI falls to four-month low in July

Key facts

• Canada's Ivey Purchasing Managers Index (PMI) decreased to 55.1 in July, its lowest level since March.
• The decline in the PMI indicates a slower pace of economic expansion in Canada.
• The employment component of the index fell to 52.2 in July.
• The prices index, however, accelerated, rising to 75.5 in July.

Canadian economic activity expanded at a slower pace in July, with the seasonally adjusted Ivey Purchasing Managers Index (PMI) falling to its lowest level since March. The index decreased to 55.1 from 56.2 in June, according to data released on Friday. The gauge of employment within the PMI dipped to an adjusted 52.2 from 53.6 in the previous month. Meanwhile, price increases accelerated, with the adjusted prices index rising to 75.5 from 73.7 in June. The Ivey PMI measures month-to-month variations in economic activity across Canada, with a reading above 50 indicating an increase. The unadjusted PMI also saw a decline, falling to 54.1 from 59.7. The Ivey PMI is prepared by the Ivey Business School and is considered to have predictive power for forecasting Canadian macroeconomic activity.