Canada: Purchasing managers index plummets below expansion threshold in January
February 4, 2011
The Ivey Purchasing Managers Index (PMI) sponsored by the Richard Ivey School of Business and the Canadian Management Association plunged from 50.0 points in December to 41.4 points in January. The reading contrasted market analyst expectations, which had seen the index increasing to 53.0 points. The PMI fell below the 50-point threshold for the first time since January 2010, suggesting a contraction in the manufacturing sector. The decline in January was mostly driven by worse results in the inventories component of the index, which fell by 1.2 points (December: +12.4 points).