| Actual | Previous | |
| Adjusted Index | 55.1 | 56.2 |
| Unadjusted Index | 54.1 | 59.7 |
Highlights
Canada business activity continued to grow in July, albeit at a slower pace than in June, as reflected in the Ivey PMI decline to 55.1 from 56.2 in June. While the index has been above 50.0 in 11 of 12 months this year (49.7 in March), July marks the second consecutive month of slowdown.
Among Purchasing Managers surveyed, 29.7 percent reported greater purchases than in June, while 21.4 percent reported a decline from July.
The Employment index dipped to 52.2 in July from 53.6 in June, pointing to further employment gains in July after the economy added 75,100 jobs in June, above expectations. The unemployment rate declined to a two-year low of 6.4 percent. Among respondents, 22.1 percent reported an employment increase in July, while 16.1 percent reported a decrease.
The Inventories Index rose four points to 54.9, and the Supplier Deliveries index rose to 45.9 from 44.3, the only index below 50.0 in July.
On the inflation front, the news was not great, as the Prices index rose to 75.5 from 73.7 the previous month, with half of respondents reporting higher prices in July compared to June, and 2.1 percent reporting lower prices.
The unadjusted PMI index decreased to 54.1 in July from 59.7 in June.
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.