CA: Ivey Purchasing Managers' Index


Tue Jun 06 09:00:00 CDT 2017

Actual Previous
Index Level 62.6 58.5

Highlights
The May unadjusted Ivey purchasing managers index jumped to 62.6 from 58.5 in April. Among the components, the employment index slipped to 54.5 from 54.8 the month before. The prices index declined to 59.7 from 66.5. The inventories index reading was 57.6, up from 51.2. Finally the supplier delivery index retreated to 45.6 from 49.4.

On a seasonally adjusted basis, the overall index reading for May declined to 53.8 from 62.4 in April. The employment index eased to 50.4 from 53.7. The prices index reading dropped to 51.3 from 70.9 the month before. The supplier deliveries index reading was 44.6, down from while the inventories index jumped to 56.5 from 46.5.

Definition
The Ivey purchasing Managers' Index (PMI) measures purchasing activity as indicated by a panel of purchasing managers selected geographically and by sector of activity to match the Canadian economy as a whole. The PMI includes both the public and private sectors and is based on month-end data. Five categories are covered in the survey: purchases, employment, inventories, supplier deliveries and prices. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting).

Description
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.