Canada's Ivey PMI Surges to 64.3, Beats Forecasts and Rattles Rate Expectations

Canada's Ivey Purchasing Managers Index (PMI) from S&P Global reached 64.3 in August, exceeding expectations of 56.2.

This reading points to an acceleration in purchasing activity over the month and suggests a faster pace than markets had anticipated.

The surge in the index indicates firmer operational conditions for Canadian businesses during August, with strong purchasing data suggesting rising domestic demand and sticky input costs.

The unexpected economic strength is likely to force the Bank of Canada to scale back its rate-cutting narrative for the remainder of 2026, with traders recommending shorting Canadian short-term interest rate (BAX) futures to capitalize on rising yield expectations in the coming weeks.