Canada: Manufacturing activity reaches a four-year high in September
October 6, 2010
The Ivey purchasing managers index (PMI) sponsored by the Richard Ivey School of Business and the Canadian Management Association surged for a second consecutive month in September, jumping from 65.9 points in August to 70.3 points. Furthermore, the reading came in well above market expectations, which had seen the index falling to 62.0 points and, in fact, represented the highest level since 2006. A reading above 50 indicates that the manufacturing sector is expanding, while a reading below 50 implies a contraction. September's surge was broad-based, as three out of four components composing the index increased over the previous month. The main drivers behind the September improvement were employment and inventories, which rose 3.2 points each, reaching 54.8 and 58.5 points, respectively. On the other hand, the delivery component was the only category to drop compared to the previous month in addition to being the only one below the 50-points threshold at 44.4 points.