The unadjusted Ivey PMI eased to a reading of 56.5 in October from 68.1 in September. The seasonally adjusted measure showed an increase to 59.7 from 58.4 the month before. This left the adjusted index in positive growth territory for a fifth consecutive month.
Among the adjusted results, the employment sub-index was up 3.3 points to 57.3. Elsewhere, delivery times retreated to 49.2, below the 50 breakeven mark while inventories (53.5 after 46.7) increased. Prices (61.5 after 56.8) jumped. The PMI findings suggest that in October, the Canadian economy continues to grow, especially when combined with today's relatively strong employment report.
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).
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.