Canadian Economy Weakens, as the Ivey Indicator Dives

The Canadian Ivey PMI indicator posted a sharp decline for September

Skerdian Meta•Thursday, October 8, 2020•1 min read

The economic weakness is evident in Canada

The Canadian economy went through a major contraction during the lockdown months, as most major economies did. The economic recovery after the reopening came later and was slower than in other countries. Now, the economy is weakening again.

Core retail sales declined in July, while the CPI (Consumer Price Index) inflation turned negative in August. Yesterday, the Ivey PMI report for September posted a sharp decline for that month. If the data keeps softening, the CAD will turn bearish, sending the USD/CAD pair higher, although crude oil also has a say in the Canadian Dollar.

Sharp fall in the Ivey PMI index

IVY Purchasing Managers Index (SA) for September weaker at 54.3 points vs. 67.8 in August
Unadjusted index comes in at 61.1 points
The index was at 48.7 points a year ago
3-month average is 63.5 points
Employment 53.8 points vs. 56.1 in August
Inventory 44.1 points vs. 50.9 in August
Supplier deliveries 40.7 points vs. 51.3 in August
Price is 60.3 points vs. 57.6 in August

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ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.