Canada’s Ivey PMI soars to 10-month high in Sep, indicates broad improvement in economic activity

Canada’s Ivey Purchasing Managers’ Index (PMI) soared to 10-month high during the period of September, remaining well above the 50-point neutral mark that pointed towards an improvement in the economic activity of the country’s business sector.

Canada’s Ivey Purchasing Managers Index (PMI) jumped to 58.4 in September on a seasonally adjusted basis from 52.3 in August, indicating a strengthening Canadian economy. This is the highest reading since January when the PMI stood at 66, data released by the Ivey Business School showed Friday.

The Employment Index rose sharply to 54 from 46.9 in August. This is the highest level since July when it was recorded at 59.5. Inventories fell dramatically to 46.7 from 61.2 prior, the lowest level since October 2015, data showed.

Further, the Supplier Deliveries Index rose for a consecutive month, now at 51.7 from 46.1. The Prices Index edged higher to 56.8 in September from 56.7 in August. Prices have been relatively stable over the past three months.

Meanwhile, Canada’s net employment change in September was 67.2k, well above the 10k analysts were anticipating, according to a Reuters survey, and above the 26.2k jobs added in August.