| Actual | Previous | |
|---|---|---|
| Adjusted Index | 50.1 | 55.8 |
| Unadjusted Index | 50.0 | 54.6 |
Highlights
Canada's Ivey Purchasing Managers Index (PMI) declined to 50.1 in August from 55.8 in July, pointing to a weakening resilience of the economy.
The PMI indicates that purchases were roughly the same as the previous month, with 29.4 percent of purchasing managers reporting higher purchases, down from 33.7 percent in July, while 29.4 percent also reported lower purchases.
The employment index declined to 46.0 from 51.2. Earlier Friday, Statistics Canada reported a nearly 66,000 drop in employment, driving the unemployment rate up to 7.1 percent.
The supplier deliveries index came down to 47.0 from 50.2, the prices index declined to 65.1 from 68.5, while the inventories index rose to 49.5 from 48.7.
The unadjusted PMI index decreased to 50.0 from 54.6.
The PMI indicates that purchases were roughly the same as the previous month, with 29.4 percent of purchasing managers reporting higher purchases, down from 33.7 percent in July, while 29.4 percent also reported lower purchases.
The employment index declined to 46.0 from 51.2. Earlier Friday, Statistics Canada reported a nearly 66,000 drop in employment, driving the unemployment rate up to 7.1 percent.
The supplier deliveries index came down to 47.0 from 50.2, the prices index declined to 65.1 from 68.5, while the inventories index rose to 49.5 from 48.7.
The unadjusted PMI index decreased to 50.0 from 54.6.
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.
