| Actual | Previous | |
|---|---|---|
| Adjusted Index | 48.9 | 47.9 |
| Unadjusted Index | 53.8 | 52.3 |
Highlights
Canada's Ivey Purchasing Managers Index (PMI) recovered 1.0 point to 48.9 in May but remained below the 50.0 mark, indicative of a contracting economic activity.
In its June 4 policy statement, the Bank of Canada said it expects a considerably weaker Canadian economy in the second quarter, after a 2.2 percent annualized GDP growth in the first quarter.
The Ivey PMI employment index edged up to 51.1 from 48.0. Forecasters in an Econoday survey expect the Canadian economy to have added just 2,000 jobs in May, with estimates ranging from a 15,000 decline to a 5,000 increase, overall reflecting a lackluster job market. The unemployment rate is expected to reach 7.0 percent, up from 6.9 percent in April.
The inventories index rose to 54.9 from 53.1, the supplier deliveries index was up to 47.5 from 45.1, while the price index came down to 66.9 from 70.0.
The Ivey PMI unadjusted index rose to 53.8 from 52.3.
In its June 4 policy statement, the Bank of Canada said it expects a considerably weaker Canadian economy in the second quarter, after a 2.2 percent annualized GDP growth in the first quarter.
The Ivey PMI employment index edged up to 51.1 from 48.0. Forecasters in an Econoday survey expect the Canadian economy to have added just 2,000 jobs in May, with estimates ranging from a 15,000 decline to a 5,000 increase, overall reflecting a lackluster job market. The unemployment rate is expected to reach 7.0 percent, up from 6.9 percent in April.
The inventories index rose to 54.9 from 53.1, the supplier deliveries index was up to 47.5 from 45.1, while the price index came down to 66.9 from 70.0.
The Ivey PMI unadjusted index rose to 53.8 from 52.3.
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.
