Canada PMI May 2017


Canada: PMI eases from April's 15-month high on falling prices in May

June 6, 2017

The Ivey Purchasing Managers Index (PMI), prepared by the Richard Ivey School of Business, fell by a seasonally-adjusted 8.6 points from a month earlier to arrive at 53.8 in May. The reading was the lowest in nine months and came in well below market analysts’ expectations of a more moderate 2.4 point decline. Despite May’s result, the index remains above the 50-point threshold that distinguishes expansion in the manufacturing sector.

Breaking down the print, May’s decline was mostly the result of a substantial decrease in the prices sub-index, which fell to a multi-year low. Meanwhile, the employment and supplier deliveries sub-indices took more moderate hits as employment eased and deliveries slowed. On the other hand, the inventories sub-index climbed considerably from a month earlier as stocks accumulated.

FocusEconomics Consensus Forecast panelists expect 2.8% growth in industrial production in 2017, which is up 0.7 percentage points from last month’s forecast. For 2018, the panel expects industrial production growth to edge down to 1.7%.

Author:, Economist

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