Canada: Ivey PMI cools off for a second consecutive month in August
September 7, 2017
The Canadian manufacturing sector contracted further in August following a drop in July, according to the Ivey Purchasing Managers Index (PMI), prepared by the Richard Ivey School of Business. The index dropped by a seasonally-adjusted 3.7 points in August to 56.3 and now stands closer to the 50-point threshold that distinguishes expansion from contraction in the manufacturing sector.
Ivey releases four additional monthly indices related to manufacturing, along with the PMI. Of these, one index fell significantly from the previous month while the remaining three recorded gains. Notably, the employment index reached its highest level since November 2016. Moreover, inventories also rose in August. Despite inching up, the supplier deliveries index was once again the only index in contractionary territory. On the other hand, the prices index fell sharply in August following a spike last month, suggesting that pressures from input costs have eased.
Author: Lindsey Ice, Economist