Canadian Ivey PMI Declines in March 2025, Indicating Slower Economic Expansion
Canadian Ivey PMI Declines in March 2025, Indicating Slower Economic Expansion
The Ivey Purchasing Managers Index (PMI) for Canada, a key indicator of economic activity, registered a seasonally adjusted reading of 51.3 in March 2025. This marks a decline from February’s figure of 55.3 and falls short of market expectations, which had anticipated a reading of 53.2.
The Ivey PMI is a monthly economic index that measures the month-to-month variation in economic activity as reported by a panel of purchasing managers from across Canada. A reading above 50 indicates an expansion in economic activity compared to the previous month, while a reading below 50 suggests a contraction.
Detailed Breakdown of March 2025 Ivey PMI Components:
Employment Index: The employment index decreased to 48.2 in March from 53.7 in February, indicating a contraction in employment levels.
Inventories Index: The inventories index rose to 53.0, up from 49.4 in the previous month, suggesting an accumulation of inventories.
Supplier Deliveries Index: This index declined to 43.2 from 47.6, pointing to slower supplier deliveries.
Prices Index: The prices index increased to 75.6, up from 71.5, indicating rising price pressures.
The decline in the overall PMI and the contraction in the employment index suggest that Canadian businesses experienced a slowdown in economic activity during March. The increase in the inventories index may indicate that businesses are accumulating stock, possibly due to anticipated demand or supply chain considerations. The drop in the supplier deliveries index points to delays in deliveries, which could be attributed to logistical challenges or increased demand. The rise in the prices index reflects growing inflationary pressures, which may impact business costs and pricing strategies.
the health of the Canadian economy. The latest figures suggest that while the economy is still in expansion territory, the pace of growth has slowed, and certain sectors may be facing challenges. Businesses and investors will be watching upcoming economic data releases closely to assess whether this slowdown is temporary or indicative of a more sustained trend.
