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Canada's economic activity growth slowed in December 2019, Ivey index shows

Canadian economic activity grew at a slower pace in December 2019 after sharply rebounding out of contraction territory in the prior month, the latest Ivey Purchasing Managers Index showed.

The seasonally adjusted index fell month over month to 51.9 from 60.0. The index measures monthly differences in economic activity derived from a survey of purchasing managers across Canada, with a reading above 50 indicating expansion.

The inventories index declined to 52.5 from 59.1, while the supplier deliveries index dropped to 49.3 from 52.7. The employment index rose to 51.4 from 50.3, and the prices index advanced to 59.5 from 54.9.

The latest reading followed a Dec. 23, 2019 report from Statistics Canada, which showed that the country's seasonally adjusted monthly GDP contracted 0.1% in October 2019, the first decline in eight months amid steep falls in economic output in manufacturing and retail trade.