| Consensus | Actual | Previous | |
|---|---|---|---|
| Adjusted Index | 56.0 | 53.9 | 56.5 |
| Unadjusted Index | 56.3 | 54.4 |
Highlights
The Ivey PMI slowed from 56.5 in January to 53.9 in February, lower than expected but still indicating respectable growth in overall purchasing activity. Hiring for Ivey's sample, however, slowed noticeably, down more than 6 points to 50.8 for a multi-year low in a result that won't be raising forecasts for Friday's labour force survey where a solid rise in employment is expected.
Details include faster delivery times suggesting that a rise in inventories, also reported in the month, was not due to supply snags but perhaps to expectations for rising demand. Prices are a clear positive, slowing to 60.4 for the lowest rate of monthly inflation since October last year.
Details include faster delivery times suggesting that a rise in inventories, also reported in the month, was not due to supply snags but perhaps to expectations for rising demand. Prices are a clear positive, slowing to 60.4 for the lowest rate of monthly inflation since October last year.
Definition
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).
Description
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.
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.
