Canada's Ivey Purchasing Managers Index (PMI) rebounded to 53.3 in June from 48.9 in May, showing a more resilient economy after two months below the 50.0 threshold indicative of a contracting economy. At this time last year, the index was at 62.5.

On the surface, today's report contrasts with the decline in the S&P Global Canada Services PMI Business Activity Index to 44.3 in June from 45.6 in May.

However, the recovery in the Ivey PMI index, which reflects the entire economy, was driven by an increase in the price index to 70.2 from 66.9, while other components were lower, including the employment index, which came down to 49.5 from 51.1 the previous month. At 50.6, the inventory index, while still pointing to growing inventories, indicated a slower pace after U.S. tariff threats led businesses to pull forward both imports from and exports to the U.S. earlier this year.

Canada's real GDP contracted 0.1 percent in April and the advance estimate for May points to another 0.1 percent decline on the month. The advance estimate for June will be released at the end of this month.

The Ivey PMI unadjusted index rose to 54.6 from 53.8.

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.