CA: Ivey Purchasing Managers' Index


Thu Sep 07 09:00:00 CDT 2017

Actual Previous
Index Level 56.8 52.9

Highlights
The August unadjusted Ivey purchasing managers' index reading jumped to 56.8 from 52.9 in July. Among the components, the employment index climbed to 56.8 from 52.4 the month before. The prices index edged lower to 60.5 from 61.1. The inventories index reading climbed to 56.5 from 52.7. Finally the supplier delivery index reading rebounded to 47.5 from 44.2 in July.

On a seasonally adjusted basis, the overall index reading for August declined to 56.3 from 60.0 in July. The employment index reading climbed to 55.9 from 52.6 the month before. The prices index reading eased to 59.9 from 69.2 the month before. The supplier deliveries index reading edged higher to 47.6 from 46.2 while inventories increased to 57.1 from 55.8.

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.