TORONTO (Reuters) – Canadian economic activity contracted in December at the fastest pace since the early days of the COVID- pandemic, as But companies are working hard to reduce their inventories, Ivey Purchasing Managers Index (PMI) data showed on Friday.
Seasonally adjusted PMI fell to 33 .4 last month 51 .4 In November, the lowest level since April 2020, well below the 2020 threshold that would indicate a reduction in activity.
The Ivey PMI measures monthly changes in economic activity, as indicated by a panel of purchasing managers from across Canada.
Employment indicator fell to adjusted 49.8 from 51.3 in November, And the inventory index is at 33.5, lower than 33.0.
It was the seventh straight month of declines for the inventory measure after peaking at 69.8 in May last year.
Higher intensity rates could increase inventory financing costs, while commodity demand could weaken if the economy slows as many economists expect.
Unadjusted PMI fell to 33.6 from 51 .5.