Canada: PMI jumps in June as manufacturing sector recovers ground lost in May
July 7, 2017
The manufacturing sector seemed back on-track in June following a weak performance in May. In June, the Ivey Purchasing Managers Index (PMI), prepared by the Richard Ivey School of Business, jumped by a seasonally-adjusted 7.8 points from a month earlier to arrive at 61.6. June’s reading was the second-highest in a year and a half—behind only April’s print—and came in well above analysts’ expectations of a more moderate 4.0 point increase. With June’s result, the index climbed further away from the 50-point threshold that distinguishes expansion in the manufacturing sector.
Ivey releases four additional manufacturing-related monthly indices, along with PMI, and these experienced broad-based improvement in June. Notably, the prices index recovered from May’s substantial fall, while the inventories index climbed again as stocks accumulated. Meanwhile, the employment and supplier deliveries indices posted more moderate gains, although the latter still remained in contractionary territory.
Author: Christopher Thomas, Economist