CA: Ivey Purchasing Managers' Index


Wed Jun 06 09:00:00 CDT 2018

Actual Previous
Index Level 69.5 70.4

Highlights
May unadjusted Ivey purchasing managers survey reading fell back to 69.5 from 70.4 in April. On an adjusted basis, the reading declined to 62.5 from 71.5.

On an adjusted basis, the employment index rebounded to 61.2 from 57.0. Supplier deliveries index edged up to 48.7 from 48.3. The prices index eased to 64.4 from 67.8 the month before. The inventories index reading was 55.0, up from 52.4.

On an unadjusted basis, the employment index rebounded to 64.9 from 57.9 while the price index eased to a reading of 65.5 from 70.3. The inventories index climbed to 57.4 from 55.4. The deliveries index slipped to 48.6 from 49.3.

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.