The index posted by Western University's Ivey Business School in London provided a sharp contrast in May to an almost celebratory tone in April.
The Ivey Purchasing Managers Index released Tuesday, showing the pace of purchasing activity in Canada slowed substantially in May as measures of prices, employment and supplier deliveries declined.
The seasonally-adjusted index fell to 53.8 from 62.4 in April. A reading above 50 indicates an increase in the pace of activity.
However, the unadjusted index rose to 62.6 from 58.5.
The Ivey index also showed that, on an adjusted basis, the gauge of employment cooled to 50.4 from 53.7, while supplier deliveries fell further into contraction territory at 44.6 from 49.1. At the same time, inventories rose to 56.5 from 46.5.
Prices also tumbled, suggesting some of the recent pressure on companies' operating margins may be easing. The measure declined to 51.3 from 70.9.
