MNI: Canada Jan Ivey PMI Down to 55.2, Lowest Since May 2017

By Yali N'Diaye

     OTTAWA (MNI) - The Canadian Ivey Purchasing Managers Index declined for a

third consecutive month, reaching 55.2 in January after 60.4 in December, the

lowest since May 2017, data from the Richard Ivey School of Business showed

Tuesday.

     The decline occurred despite a 4.1-decrease in the price index to 66.6,

indicating the PMI index decline was likely explained by softer activity. 

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

economic sectors.

     --EMPLOYMENT INDEX STABLE

     The employment index was little changed at 56.5 from 56.7 in December, with

17.7% of respondents reporting higher employment in January, compared to 23.9%

in December.

     Statistics Canada will publish the January Labor Force Survey on Friday.

Analysts in a MNI survey expect employment to retreat 9,000 in January after a

78,600 surge in December, with the unemployment rate ticking up 0.1 percentage

point to 5.8%. 

     Elsewhere, the Ivey PMI inventories index rebounded 9.3 points to 58.4,

while the supplier deliveries index decreased 1.8 points to 46.4.

     On an unadjusted basis, the Ivey PMI rose 2.0 points, returning above the

50 threshold indicative of economic expansion. The index reached 51.3 in

January, with all indices rising except for a 1.5-point decrease in the

employment index to 51.3.

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

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