05.09.202514:00:00UTC+00Canadian Ivey PMI Drops to Neutral Territory in August

The Ivey Purchasing Managers Index (PMI), a key indicator of Canadian economic activity, fell to 50.0 in August 2025, down from 54.6 in July, according to the latest data updated on September 5, 2025. The decline brings the index down to neutral territory, suggesting that the economy is neither expanding nor contracting during this period.

This shift indicates a significant slowdown in economic momentum from the previous month when the PMI reading was above the 50.0 threshold that typically signals expansion in the economy. The drop could point to a variety of factors impacting Canadian businesses, such as increased cost pressures, supply chain constraints, or a decrease in consumer demand.

Market analysts and economists will be closely monitoring subsequent readings to determine if this is a temporary pause in economic growth or a signal of further challenges ahead. The findings are likely to influence policymakers’ decisions and may have implications for future economic strategies in the country. Businesses across sectors will be assessing their strategies in response to this change, aiming to adapt and thrive amidst evolving market conditions.