Canada: Ivey PMI sags to a four-month low in January

The Ivey Purchasing Managers’ Index (PMI), prepared by the Richard Ivey School of Business, dipped to 54.7 in January from 59.7 in December. The index missed market analysts’ expectations of 56.0, but remained above the 50-point threshold separating expansion from contraction in economic activity.

Along with the PMI, Ivey measures four other business-related indices: employment, inventories, prices and supplier delivery times. In January, price pressures eased, employment growth softened, firms accumulated inventories at a faster pace compared to December and delivery times lengthened.

Canada Fixed Investment Forecast

FocusEconomics Consensus Forecast panelists expect fixed investment to increase 0.9% in 2019, which is down 0.9 percentage points from last month’s forecast. For 2020, our panel projects fixed investment to increase 1.9%.