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Canada's seasonally adjusted Ivey purchasing managers' index dropped to 50.1 in March from 53.4 in February. Analysts had expected the index to rise to 55.0.
A reading above 50 indicates a rise in the pace of activity, below 50 indicates a contraction in the pace of activity.
The supplier deliveries index was down to 48.5 in March from 49.4 in February, while employment index rose to 50.7 from 50.3.
The prices index was increased to 58.5 in March from 57.8 in February, while inventories plunged to 48.6 from 49.9.
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