Canada July Ivey PMI Down to 60.0 Despite Higher Price Index

By Yali N'Diaye

     OTTAWA (MNI) - The Canadian Ivey Purchasing Managers Index edged down to

60.0 in July from 61.6 in June, but was still indicative of economic expansion,

data from the Richard Ivey School of Business showed Friday.

     The decline occurred despite an 11.8-point gain in the price index to 69.2,

suggesting the lower PMI was related to weaker activity rather than lower

prices.

     The Canadian Ivey PMI, unlike that produced by the U.S. Institute for

Supply Management, is based on end-of-month data and covers the complete

Canadian economy, including the public and private sectors. It reflects the

value change of firms' purchases.

     The employment index, however, edged up to 52.6 from 52.0, with 27.1% of

respondents reporting higher employment against 22.4% reporting lower

employment.

     Statistics Canada said Friday that employment was up 10,900 in July, with

the unemployment rate down to 6.3%, its lowest level since October 2008,

although this was largely due to a lower participation rate.

     Elsewhere, the Ivey PMI inventories index declined to 55.8 in July from

60.7 in June, and the supplier deliveries index decreased to 46.2 from 46.9.

     On an unadjusted basis fell to 52.9 in July from 63.9 in June, reaching its

lowest level since January.

--MNI Ottawa Bureau; +1 613 869-0916; email: yali.ndiaye@marketnews.com

[TOPICS: MACDS$,M$C$$$]