The February unadjusted Ivey purchasing managers index climbed to a reading of 55.1 from 52.3 the month before. Among the components, the employment index was up from January's 48.3 to 53.4 in February. However, the prices index eased to 61.2 from 64.1 in January. The inventories index jumped to 51.3 from 46.0 the month before. Finally the supplier delivery index eased down to 44.6 from 45.7.
On a seasonally adjusted basis, the overall index reading for February was 55.0, down from 57.2 in January. The employment index however, edged up to 54.5 from 53.5. The prices index reading was 61.1, down from 70.1 in January. The supplier deliveries index slipped to 45.9 from 46.6 while the inventories index climbed to 51.4 from 46.4 in the prior month.
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.