Ivey Canada Purchasing Managers Index (PMI)

Canada Ivey Purchasing Managers Index (Ivey PMI) shows economic activity in the past month, calculated by the Ivey School of Business.

The indicator is calculated based on a survey of purchasing managers in the private and public sector companies. The survey involves representatives of several hundred companies selected in view of their field of activity and geographical location. Respondents answer questions about whether purchases, employment, supplies and prices in their sector have become better, worse or has not changed over the reported month. The answers to questions do not contain quantitative assessments, while respondents describe activities in terms of "higher", "lower" or "unchanged" as compared to the previous month.

Often purchasing managers can track changes in market conditions prior to other company employees, because purchases precede company's production activities.

The index is seasonally adjusted. Individual weights are given to polled companies. Readings above 50 indicate that most of respondents positively characterize current business conditions. Readings below 50 mean worsening of business conditions.

PMI is one of the most popular indexes closely watched by analysts. It provides operational information covering the entire manufacturing sector. It is interpreted as a leading indicator of production and inflation. Index growth is an indication of favorable changes in market conditions and can be seen as positive for the Canadian dollar.