Canada: Ivey PMI walks back April’s multi-year high
In May, the Ivey Purchasing Managers Index (PMI), prepared by the Richard Ivey School of Business, dipped 9.0 points from April’s multi-year high to land at 62.5 points. May’s reading, which came in below analysts’ expectations of a 69.7-point outturn, erased most of April’s unprecedented gains but was still elevated by recent historical standards. Furthermore, the seasonally-adjusted index remained comfortably above the 50-point threshold that separates expansion from contraction in purchasing activity at Canadian firms.
Along with the PMI, Ivey produces four other business-related indices and their readings told a broadly positive story in May. Most notably, all but the prices index increased. Prices, which jumped in April, rose at a more moderate pace in May. Inventories also climbed, while supplier deliveries continued to slow. Meanwhile, the employment index ticked higher in the month—contrasting Statistic Canada’s surprising jobs report for May, which showed the unemployment rate stable at 5.8% on unexpected job losses.