Canada: Ivey PMI tumbles to a two-year low in September
October 4, 2018
The Ivey Purchasing Managers’ Index (PMI), prepared by the Richard Ivey School of Business, fell from 61.9 in August to 50.4 in September. The print was well below analysts’ expectations of 62.3 and represented the lowest print in two years. The seasonally-adjusted index barely remained above the 50-point threshold separating expansion from contraction in purchasing activity by Canadian firms.
Along with the PMI, Ivey produces four other business-related indices, the readings of which were mixed in September. The employment index related to Ivey’s PMI fell sharply from 59.6 in August to 51.6 in September, the lowest level since May 2017. In line with August’s moderation in inflation, Ivey’s price index also fell. That said, the index remained elevated by recent historical standards.
Author: Steven Burke, Economist