The April unadjusted Ivey purchasing managers index declined to a reading of 58.5 from 67.6 in March. Among the components, the employment index increased to 54.8 from 53.2 in March. The prices index climbed from 63.0 in March to 66.5. The inventories index reading dropped to 51.2 from 61.6 the month before. Finally the supplier delivery index retreated to 49.4 from 51.7.
On a seasonally adjusted basis, the overall index reading for April edged up to 62.4 from 61.1 in March. The employment index eased to 53.7 from 53.9. The prices index reading jumped 70.9 from 57.0 the month before. The supplier deliveries index reading was 49.1, down from 49.9while the inventories index tumbled to 46.5 from 61.7 in March.
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.