Canada: PMI tumbles to 16-month low in November
December 7, 2012
The Ivey Purchasing Managers Index (PMI), which is sponsored by the Richard Ivey School of Business and the Purchasing Management Association of Canada, declined a seasonally adjusted 10.8 points to 47.5 points in November. The fall marked the fourth consecutive drop in the index, driving the indicator to its lowest level since July 2011. In addition, the deterioration exceeded market expectations that had the PMI moderating only to 58.2 points.
As a result of the monthly deterioration, the PMI is now below the 50-point threshold, which indicates that the manufacturing sector is contracting. Moreover, at the current level, the PMI index is 12.4 points below the level observed in the same month last year.