FX.co ★ Canada’s Ivey PMI Slips into Contraction in March, Signaling Cooling Economic Momentum

Canada’s business activity took a noticeable step back in March, as the Ivey Purchasing Managers Index (PMI) fell to 49.7 from 56.6 in February 2026, slipping below the 50-point threshold that separates expansion from contraction. The latest reading, updated on 7 April 2026, suggests a cooling in overall purchasing activity and a potential softening in near-term economic momentum.

The decline from February’s solid expansionary level indicates that Canadian firms scaled back orders and procurement at the end of the first quarter. A PMI below 50 can reflect weaker demand conditions, greater caution among businesses, or emerging cost and supply pressures weighing on activity. While one month does not establish a trend, the drop from 56.6 to 49.7 will likely prompt closer scrutiny from investors and policymakers tracking the strength of Canada’s economy into the spring.