The Ivey
Business School Purchasing Managers Index (PMI), measuring Canada’s economic
activity, jumped by 4.4 points to 53.5 in June from an unrevised 48.9 in May. The latest reading indicated the private sector’s activity resumed expansion
after a two-month shrinkage and
grew at the fastest pace since February (55.3).
The 50-point mark separates expansion from contraction.
Economists had expected
the indicator to increase to 49.1 in June.
According to the report, the employment index fell by 1.6 points to 49.5,
indicating employment returned to contraction territory after a one-month
increase. The deliveries gauge declined by 2.8 points to 44.7, implying a contraction in deliveries for the 15th
month running. The inventories measure plunged by 4.3 points to 50.6,
pointing to continued expansion in inventories for the fourth consecutive month,
albeit at the weakest pace in the sequence. Meanwhile, the prices indicator surged by 3.3
points to 70.2, suggesting that prices continued to rise last month and
increased at the quickest pace since March (75.6).