The seasonally adjusted Ivey purchasing managers index for April rose to 63.0 from 57.5 in March, the first time it has crested the 60-mark since January 2023. The increase reflects a 1-point increase in the employment index to 56.4 in April, the inventories index down to 52.8 in April from 55.6 in March, a dip in the deliveries index to 49.6 in April from 52.1 in the prior month, and an acceleration in the prices index to 62.4 from 57.9.

The unadjusted purchasing mangers index rose to 65.7 in April after 63.0 in March and is the highest since 66.7 in May 2022. The unadjusted index for employment is essentially unchanged at 57.3 in April after 57.1 in March, the inventory index is down to 53.9 from 59.5 in the prior month, the deliveries index is near neutral at 50.8 in April after two months of small declines, and the prices index is up to 64.3 in April after 60.2 in March.

While overall activity is firming, the details suggest that it is mainly from higher prices although employment is gaining some upward momentum that indicates a need for an expanded workforce to meet rising demand.

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.