• Ivey PMI dropped sharply to 45.0 in December from above 60.0 in November. 
• The seasonally adjusted measure also dropped sharply, but remained above 50.0.
• The loonie ignored the data and continues to bask in the afterglow of a strong December labour market report. 

Canada's Ivey PMI, which is released by the Richard Ivey School of Business each month and captures business conditions in Canada, fell to 45.0 in December from 61.2 in November. As with other PMI indicators, a result above 50 is generally associated with MoM growth in economic activity. Thus, Canada's Ivey PMI suggests business conditions in the country fell into contractionary territory last month. However, the less volatile seasonally adjusted version of the PMI index fell to 51.1, remaining in expansion territory, after slipping from 61.2 in November.  

Market Reaction

The loonie continues to bask in the afterglow of a stronger than anticipated December labour market report and has thus, for now, ignored the weaker Ivey PMI report.