A pedestrian walks past a row of closed storefronts in Montreal on Jan. 25, 2021.Ryan Remiorz/The Canadian Press
Canadian economic activity contracted in January for the second straight month as a measure of employment fell to its lowest level since the first wave of the coronavirus pandemic, Ivey Purchasing Managers Index (PMI) data showed on Friday.
The seasonally adjusted index rose to 48.4 from 46.7 in December. A reading below 50 indicates decreasing activity.
The Ivey PMI measures the month-to-month variation in economic activity as indicated by a panel of purchasing managers in the public and private sectors from across Canada.
The Bank of Canada said last month it expects the economy to contract in the first quarter after lockdowns were implemented to help contain the pandemic.
The gauge of employment fell to an adjusted 41.5 - its lowest since last April - from 45.8 in December, while the prices index surged to 82.8 from 66.9.
The unadjusted PMI rose to 55.7 from 53.9 in December.
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