The Ivey Purchasing Managers Index (PMI) for Canada’s business sector fell more than anticipated in November to 55.9 from 61.2, signaling that activity is still growing, but at a slower pace. A breakdown shows that price growth abated while employment conditions deteriorated, but this runs directly counter to Canada’s government labor market statistics that were released at 7:00 ET. Indeed, the report showed that Canada’s economy gained a net 79,100 jobs in November, primarily in the services sector, which brought the unemployment rate down to 8.5 percent from 8.6 percent. The jobs were almost evenly split between full-time and part-time, suggesting that a good number of the positions may just be temporary for the holiday season. Nevertheless, the improvement bodes well for consumption in coming months.

See original here:
Canadian Ivey PMI Disappoints Following Stellar Employment Results