The Ivey PMI unadjusted reading for January was 52.3, up from December's 49.4. The employment index slipped to 48.3 from 48.8; inventories were 46.0, down from 47.4 the month before; supplier deliveries reading was 45.7 after 43.8 and prices were up to a reading of 64.1 from 60.0.
The January seasonally adjusted Ivey PMI reading declined to 57.2 from 60.8 in December and down from 66.0 in January 2015. The employment index reading was 53.5 while inventories were 46.4. Supplier deliveries reading was 46.6 while prices were 70.1.
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.