Canada: PMI falls into contraction territory
July 5, 2012
The Ivey Purchasing Managers Index (PMI), which is sponsored by the Richard Ivey School of Business and the Purchasing Management Association of Canada, fell a seasonally adjusted 11.5 points to 49.0 points in June. The decline exceeded market expectations that had the PMI moderating to 57.5 points and drove the index to the lowest level seen in almost a year. As a result of the monthly deterioration, the PMI is now below the 50-point threshold for the first time since July 2011, which indicates that the manufacturing sector is contracting. Moreover, at the current level, the PMI index is 10.9 points below the level observed in the same month last year.