FX.co ★ Canadian Economy Shows Signs of Slowdown as Ivey PMI Drops in October

In a surprising turn of economic events, the Ivey Purchasing Managers Index (PMI) for Canada fell sharply in October 2025, indicating a slowdown in business activity. The latest data, updated on November 6, 2025, reveals that the index has decreased to 52.4, a significant drop from September's 59.8. This sharp decline marks a notable shift in the Canadian economic landscape.

The Ivey PMI, an indicator that provides a comprehensive picture of economic activity by surveying purchasing managers, reflects the health of the business environment. A reading above 50 indicates expansion, while a figure below signifies contraction. Although the October figure remains above the threshold of 50, the substantial drop raises concerns about potential headwinds facing the Canadian economy.

Economists and market watchers will be keenly observing these developments, particularly the factors contributing to the slowdown. Whether this indicates a short-term dip or a longer-lasting trend, the next few months will be critical in deciphering the future trajectory of Canada's economic momentum and growth. Stakeholders across industries may need to reassess strategies to navigate this evolving economic scenario.