The seasonally adjusted Ivey purchasing managers index bounced back more than expected into expansion territory in September after showing contraction in August. The PMI jumped to 53.1 in September after dropping to 48.2 in August from 57.6 in July, and was unchanged from 53.1 a year ago. Expectations for the latest month centered on a marginally contractionary 49.5.

The seasonally adjusted employment index remained in expansion at 51.6 in September versus 54.7 in August, 56.1 in July, and 58.5 in September 2023. The inventories index still points to slowing growth at 53.3 in September, 53.6 in August, 54.8 in July, and 48.1 a year ago.

The supplier deliveries index came in at 47.0 in September versus 44.8 in August, 46.4 in July, and 52.5 a year ago. The prices index remained somewhat elevated at 58.2 in September versus 63.4 in August, 59.2 in July and 67.3 a year earlier. Price increases have moderated since late 2022 but have yet to maintain a slower trend.

The unadjusted Ivey purchasing managers index is up to 54.5 in September from 50.3 in August and 55.3 in July, and 54.2 in September 2023.

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.