OTTAWA (Reuters) - The pace of purchasing activity in Canada contracted in January to fall to its lowest level in 5-1/2 years, data from the Ivey Purchasing Managers Index showed on Wednesday
The seasonally adjusted index tumbled to 45.4 from 55.4 in December, well short of analysts’ expectations for 53.9. It was the lowest level since May 2009.
A reading below 50 indicates a contraction in the pace of activity. The unadjusted index continued to shrink, falling to 42.6 from 46.7.
The supplier deliveries component tumbled to 47.9 from 54.2, while employment edged down to 50.0 from 51.8. Inventories remained in contraction territory but the pace moderated to 46.4 from 41.7
Reporting by Leah Schnurr; Editing by Peter Galloway