The Ivey PMI for Canada fell to 48.4, a significant drop from the previous reading of 52.4. This decline of 4 points indicates a contraction in business activity, as the index slipped below the 50 mark, which separates expansion from contraction.
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The actual Ivey PMI result of 48.4 was notably below the analyst estimate of 53.6, suggesting weaker-than-expected business conditions. This unexpected contraction is likely to weigh on Canadian equities, particularly affecting sectors sensitive to economic cycles such as manufacturing and services. The market impact may be short-term as investors reassess growth prospects, potentially influencing monetary policy expectations if the trend persists.