MNI ANALYSIS: Canada December Ivey PMI Up To 59.7; Prices Up

By Yali N'Diaye

     OTTAWA (MNI) - The Canadian Ivey Purchasing Managers Index rebounded 2.5

points to 59.7 in December, higher than where it had started the year, although

details of the report were not all encouraging, especially when it comes to

employment, data released Monday by the Richard Ivey School of Business showed.

     The index remains above the 50 threshold that signals economic expansion,

and its increase was consistent with a 0.9-point gain in the price index to

64.6, although the price index ended the year two points below where it had

started.

     The PMI index reflects the change in the value of firms' purchases across

economic sectors.

     Despite the overall Ivey PMI advance, the employment index decreased for

the second consecutive month, and is now at 54.0, while it had started the year

at 56.5. In fact, the index declined eight out of 12 months in 2018. 

     According to Statistics Canada, the economy added 163,300 jobs in 2018, far

below the 427,300 gain the year before. In December, the unemployment rate

remained at a record low level of 5.6%. Slow wage growth remains a puzzle, with

average hourly earnings for permanent workers up 1.5% year-over-year in

December, the same pace as in November. 

     The inventories index was down 2.5 points to 52.5 in December, while the

supplier deliveries index climbed to 43.8 from 40.8.

     While the seasonally adjusted PMI rose, the unadjusted index fell 9.1

points to 48.2, below the 50 threshold for the first time since December 2017.

All indices were down.

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

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