Canada: Canadian PMI marks the sharpest drop on record
August 5, 2011
The Ivey Purchasing Managers Index (PMI) sponsored by the Richard Ivey School of Business and the Purchasing Management Association of Canada tumbled an impressive 22.8 points, the largest drop on record, settling at 45.4 points in July. The decline was well below market expectations, which saw the PMI moderating to 62.9 points. On a seasonally adjusted basis, the Ivey PMI fell from 59.9 points in June to 46.8 points in July. Consequently, the PMI plunged below the 50-point threshold for the first time since January 2011, suggesting manufacturing production contracted in July. The deterioration in the index was attributed to decreases in employment, deliveries and prices components. On the other hand, the inventories component of the index improved slightly over June.