Canada: Ivey PMI eases in July
August 4, 2017
It appears as though the manufacturing sector cooled off slightly in July following its sharp recovery in June. In July, the Ivey Purchasing Managers Index (PMI), prepared by the Richard Ivey School of Business, edged down by a seasonally-adjusted 1.6 points from a month earlier to arrive at 60.0. July’s reading came in just above analysts’ expectations of a more severe 2.1-point drop. With July’s result, the index edged closer to the 50-point threshold that distinguishes expansion in the manufacturing sector.
Ivey releases four additional manufacturing-related monthly indices, along with PMI, and their performances were mixed in July. Notably, the inventories index fell sharply while the supplier deliveries index fell more moderately—with the latter once again the only index in contractionary territory. Importantly, the employment index posted a moderate gain and signaled a further tightening in the labor market. Finally, the prices index jumped sharply and suggested that firms’ output prices rose in the month.
Author: Christopher Thomas, Economist