CA: Ivey Purchasing Managers' Index


Mon Nov 06 09:00:00 CST 2017

Actual Previous
Index Level 63.5 68.6

Highlights
The October unadjusted Ivey purchasing managers' index reading declined to 63.5 from 68.6 in September. Among the components, the employment index declined to 52.8 from 62.8 the month before. The prices index declined to 58.7 from 60.3. The inventories index reading was 59.5 after September's 57.9. Finally the supplier delivery index reading edged down to 47.6 from 47.7.

On a seasonally adjusted basis, the overall index reading for October was 63.8, up from 59.6 in September. The employment index reading declined to 52.0 from 59.4 the month before. The prices index reading climbed to 59.0 from 52.4 month before. The supplier deliveries index reading retreated to 45.9 from 48.5 while inventories jumped to 58.2 from 52.8.

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.