The Ivey
Business School Purchasing Managers Index (PMI), measuring Canada’s economic
activity, dropped by 3.4 points to 47.9 in April from an unrevised 51.3 in March. The latest reading indicated the
private sector’s activity contracted last month after expansion in February and
March.
The 50-point mark separates expansion from contraction.
Economists had forecast
the indicator to slip to 51.2 in April.
According to the report, the prices indicator plunged by 5.6
points to 70, suggesting that prices continued to increase last month, albeit at
a slower pace than in the previous two months. The employment index dropped by 0.2 points to 48.0,
indicating employment decreased for the second straight month in April. Meanwhile, the
deliveries gauge jumped by 1.9 points to 45.1, but
remained in negative territory, implying shrinkage in deliveries for the 13th
month running. The inventories measure edged
up 0.1 point to 53.1, pointing to continued growth in inventories for the
second consecutive month.