CA: Ivey Purchasing Managers' Index


Fri Jan 05 09:00:00 CST 2018

Actual Previous
Index Level 49.3 62.4

Highlights
December Ivey purchasing managers survey unadjusted reading declined to 49.3 from November's 62.4. On an adjusted basis, the reading declined to 60.4 from 63.0.

On an adjusted basis, the employment index climbed to 56.7 in December, up from 53.9 in November. Supplier deliveries index reading was 48.2 after 45.9. The prices index slipped to 62.5 from 67.7 the month before, still a strong reading. The inventories index however, dropped into contraction at 49.1 after 60.1.

On an unadjusted basis, the employment index slipped to 52.8 from 53.5 in November while the price index retreated to 59.4 from 63.3. The inventories index dropped to 43.7 from 57.6.

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.