Canada PMI August 2017

Canada

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.

FocusEconomics Consensus Forecast panelists expect 3.8% growth in industrial production in 2017, which is up 0.2 percentage points from last month’s forecast. For 2018, the panel expects industrial production growth to edge down to 1.5%.


Author:, Economist

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Canada PMI August 2017

Note: Ivey Purchasing Managers’ Index. A reading above 50 points indicates an expansion in the manufacturing sector while a value below 50 points indicates a contraction.
Source: Richard Ivey School of Business and the Purchasing Management Association of Canada.


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