Canada's seasonally adjusted Ivey purchasing managers' index dropped to 53.4 in February from 66.0 in January. Analysts had expected the index to decline to 59.0.
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 49.4 in February from 51.1 in January, while employment index fell to 50.3 in 55.1.
The prices index was slid to 57.8 in February from 71.6 in January, while inventories plunged to 49.9 from 61.4.