April data signals strengthening business activity, potentially easing recession concerns in the Canadian economy.
Canada’s Ivey Purchasing Managers’ Index rose to 63.5 in April, marking its highest level in seven months. The increase suggests a rebound in business activity after a period of sluggish growth, driven by improved demand and operational conditions.
The April reading follows a March print of 57.2 and surpasses the six-month average of 59.1. The index, which measures economic activity across sectors, has remained above the 50 threshold indicating expansion for the third consecutive month.
Markets may interpret the data as a sign of resilience, though analysts caution against overestimating the pace of recovery amid persistent inflation pressures.