CA: Ivey Purchasing Managers' Index


Tue Feb 06 09:00:00 CST 2018

Actual Previous
Index Level 51.3 49.3

Highlights
January Ivey purchasing managers survey unadjusted reading climbed to 51.3 from December's 49.3. On an adjusted basis, the reading declined to 55.2 from 60.4.

On an adjusted basis, the employment index slipped to 56.5 from 56.7 in December. Supplier deliveries index reading was 46.4 after 48.2. The prices index jumped to a strong reading of 66.6 from 62.5 the month before. The inventories index jumped to 58.4 from 49.1.

On an unadjusted basis, the employment index slipped to 51.3 from 52.8 in December while the price index jumped to 72.1 from 59.4. The inventories index climbed to 55.1 from 43.7. The deliveries index edged up to 45.3 from 44.8 the month before.

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.