- Bank of Canada
Canada's purchasing activity declined in March as employment weakened and price rises slowed while inventories increased, sparking concerns over the country's economic outlook. Ivey PMI fell to 47.9 in March, down from 49.7 last month, with a level below the 50-mark threshold indicating a fall in the pace of activity. Expectations, however, were for the index to climb to 51.1. Ivey's PMI measures monthly changes in economic activity in the public and private sectors and consists of five categories: purchases, employment, inventories, supplier deliveries and prices. The measure of employment slid to 45.1 from 47.3 to hit its lowest level since August 2013. Inventories rose to 57.9, the fastest growth in stock since September, while prices declined to 59.5 from 63.2, a second consecutive reduction.
Meanwhile, the Bank of Canada business outlook showed Canadian companies were less confident in business prospects including future sales and investment due to collapse in oil prices, with the deteriorating sentiment weighing on hiring plans. The outlook for hiring slid to its lowest since 2009, when the world economy was in recession following the credit crunch. However, the BoC quarterly survey indicated there was still room for optimism, as the US economic landscape improves, while a weaker Canadian Dollar makes the country's export products more competitive.
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