MNI DATA REACT: Canada Ivey PMI Contracts For Second Month

By Greg Quinn

     OTTAWA (MNI) - Canada's Ivey purchasing managers index contracted for a

second month in October, a sign the economy is losing the resilience that has

kept the central bank from cutting interest rates.

     The index fell to 48.2 in October from 48.7 in September after seasonal

adjustments, the Ivey business school at Ontario's Western University reported

Wednesday. The readings are the lowest in historical data posted on the

London-based school's website dating back to November 2017, with figures less

than 50 signaling a decrease in activity. 

     The decline came after BOC Governor Stephen Poloz told reporters last week

he considered cutting interest rates to offset global trade weakness and that he

would pay close attention to the economy's resilience. Some investors are

betting he will cut rates early next year as more signs of damage emerge.

     Three of four other categories in the Ivey report showed readings below 50

in October -- employment, inventories and deliveries. The prices index was the

lone exception with a reading of 57.0 on the month. 

--MNI Ottawa Bureau; +1 613-314-9647; email: greg.quinn@marketnews.com

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