The seasonally adjusted Ivey purchasing managers index for May is down to 53.5 after 56.8 in April and is lower for a second month in a row. The index has remained in expansionary territory since the start of 2023, but hasn't sustained the strength of 60.1 in January.

The seasonally adjusted index for employment is up to 56.2 in May from 55.8 in April and remains one consistent with solid hiring. The inventories index is little changed at 49.0 in May from 48.6 in April and remains below neutral for a second month in a row. The deliveries index is up to 52.1 in May from 51.2 in April and shows speedier movement along the supply chain, although still close enough to neutral that it does not indicate activity could be picking up. The prices index is up to 60.3 in May from 59.0 in April. Upward price pressures remain although well below a year ago.

The unadjusted Ivey purchasing managers index is up to 60.1 in May from 55.6 in April. So far in 2023, the index has been alternating between firmer and softer readings, although these are all for expansion. Activity appears to be trending higher but unevenly.

The unadjusted employment index is up to 60.1 in May from 57.0 in April. The pace of hiring remains moderate. The inventories index is up to 52.7 in May from 50.0 in April. Inventories have been expanding since the start of the year, but the last two months hovered closer to neutral. The deliveries index is only slightly faster at 52.7 in May after 52.0 in April and shows deliveries are running neither too hot nor too cold. The prices index is little changed at 61.2 in May after 61.9 in April. Upward price pressures are modest relative to a year earlier.

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.