The Canadian economy is facing increasing challenges as indicated by the latest Ivey Purchasing Managers Index (PMI) figures. For December 2025, the Ivey PMI non-seasonally adjusted stood at 43.3, showcasing a dip from November's reading of 44.5. The data, updated as of January 7, 2026, reflects continuing economic contraction in the country.
This downward trend in the PMI indicates that economic activities, including procurement and inventory levels, have further slowed down. A PMI score below 50 generally signals contraction, suggesting that businesses might be exercising more caution amidst an uncertain economic landscape. These figures add to concerns about the stability of the Canadian economy as external factors and domestic pressures continue to weigh heavily on market confidence.
Market analysts are closely monitoring these developments, as further decreases in PMI readings could signal deeper recessionary signals. Policymakers may need to evaluate strategic fiscal measures to stimulate the economy and enable a rebound in business activities going forward.
