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.
Author: Christopher Thomas, Economist