The unadjusted Ivey fell 9.5 points to 50.0 in July after tumbling 5.7 points to 59.5 in June. More significantly, the seasonally adjusted index declined 3 points to a reading of 52.9 from 55.9 in June.
Among the seasonally adjusted sub-indices employment dipped into contractionary territory to 49.1 from 50.7. Elsewhere, delivery times (47.6 after 48.8) continued to slow, while inventories (41.2 after 48.9) continued to decline. Lastly, prices (61.7 after 59.4) again rose but faster than in the previous month.
Taken at face value, the latest survey points to a weak start to the third quarter for the Canadian economy.
The Ivey Purchasing Managers Index measures month to month changes in dollars of purchases as indicated by a panel of purchasing managers from across Canada. The 175 participants in this survey have been carefully selected geographically and by sector of activity to match the Canadian economy as a whole. The index includes both the public and private sectors. Index panel members indicate whether their organizations activity is higher than the same as or lower than the previous month across the following five categories - purchases, employment, inventories, supplier deliveries and prices. The Ivey Purchasing Managers Index is sponsored by the Richard Ivey School of Business and the Purchasing Management Association of Canada.
The Ivey PMI is provided in two formats -- unadjusted and seasonally adjusted. The index shows responses to one question: "Were your purchases last month in dollars higher, the same, or lower than the previous month?" A figure above 50 shows an increase while below 50 shows a decrease.
The index measures the month to month variation in economic activity as indicated by a panel of purchasing managers. The index uses end of the month data and it covers all sections of Canada's economy. The PMI includes both the public and private sectors and is based on month end data Ivey PMI panel members indicate whether their organizations activity is higher than, the same as, or lower than the previous month across the following five categories: purchases, employment, inventories, supplier deliveries and prices.
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