The Ivey
Business School Purchasing Managers Index (PMI), measuring Canada’s economic
activity, increased by 1.0 point to 48.9 in May from an unrevised 47.9 in
April. The latest reading indicated the private
sector’s activity contracted last month, albeit at a slower pace than in the previous
month.
Economists had predicted
the indicator to rise to 48.3 in May.
According to the report, the employment index jumped by 3.1 points to 51.1,
indicating employment resumed growth after two months of contractions. The inventories measure climbed 1.8 points to 54.9, pointing
to continued expansion in inventories for the third consecutive month. The deliveries gauge surged by 2.4 points to 47.5, but remained in negative territory,
implying a decline in deliveries for the 14th month running. Meanwhile, the prices indicator fell by 3.1 points to 66.9, suggesting
that prices continued to increase last month, albeit at a slower pace than in
the previous three months.