Canada: PMI recovers in May
June 6, 2012
The Ivey Purchasing Managers Index (PMI), which is sponsored by the Richard Ivey School of Business and the Purchasing Management Association of Canada, increased a seasonally adjusted 7.8 points to 60.5 points in May. The increase exceeded market expectations that had the PMI rising to 54.5 points and represented, in fact, the sharpest increase in the index since August 2011. As a result, the PMI remained above the 50-point threshold for a 10th consecutive month, which indicates that the manufacturing sector continues to expand. The inventories as well as the prices indices remained above the 50-point threshold in May. The employment index, on the other hand, swung back into contraction territory for the first time in six months, suggesting that the employment situation has worsened compared with the previous month. Finally, the supplier deliveries index remained below the 50-level mark.