Canada: PMI falls below 50 threshold for the first time in over a year
June 7, 2016
The Ivey Purchasing Managers’ Index (PMI), which is sponsored by the Richard Ivey School of Business and the Purchasing Management Association of Canada, decreased a seasonally-adjusted 3.7 points in May, from 53.1 in April to 49.4. The drop puts May’s result below market expectations of a 51.5 reading and brings the volatile index below the 50 threshold for the first time in 14 months, indicating contraction in the manufacturing sector.FocusEconomics Consensus Forecast panelists see industrial production expanding 0.9% in 2016, which is up 0.6 percentage points from last month’s forecast. For 2017, the panel expects industrial production growth of 3.0%.
Author: Robert Hill, Economist