The Ivey Business School Purchasing Managers Index (PMI), measuring Canada's economic activity, decreased to 54.1 in February from an unrevised 57.3 in January.

Economists had expected the gauge to hit 53.6.

A figure above 50 shows an increase while below 50 shows a decrease.

Within sub-indexes, the employment measure rose to 54.7 in February from 51.3 in the previous month, and the inventories indicator increased to 53.3 from 50.4. At the same time, the supplier deliveries gauge dropped to 41.8 in February from 52.7 in January, while the prices index fell to 56.6 from 60.7.