The unadjusted Ivey PMI rose nearly 5 points to 57.9 in November and so reversed around half of the previous period's decline. Moreover, seasonal factors are quite strongly negative in November and after adjustment for these, the index climbed more than 10 points to 63.6, its highest reading of the year to date.
Within the adjusted results the employment sub-index climbed 5.5 points to 53.8 which, with hindsight proved to be a misleadingly strong indicator of the data released a short while ago. Otherwise, business inventories (58.4) were rebuilt quite aggressively after October's rundown while delivery times (53.4) continued to shorten. Prices (55.2) were up again but less steeply than last time (55.2).
With the November employment data already available today's PMI update is unlikely to have much impact on financial markets. Still, the survey paints a decidedly more upbeat picture of economic activity which leaves the near-term outlook all the more clouded.
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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