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Canada's seasonally adjusted Ivey purchasing managers' index rose to 49.7 in February from 45.4 in January. Analysts had expected the index to increase to 46.2.
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 fell to 47.3 from 47.9, while employment index declined to 47.3 from 50.0, lowest level since June 2014.
Inventories index climbed to 47.4 from 46.4.
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