Ivey Purchasing Managers Index (PMI) data showed that economic activity accelerated and expanded at a robust pace for the fifth consecutive month in June in Canada. According to a survey released this morning, PMI rose from 64.7 to 71.90 last month, a sign that the recovery is gaining momentum as the economy opens up thanks to increased Covid-19 vaccinations.
As a reminder, the Ivey PMI is a weighted index developed to measure the month-to-month variation in economic activity as indicated by a panel of purchasing managers from the private and public sector. When evaluating the data, any print above 50 indicates an expansion, while readings below that threshold signal a contraction in output.
On the component side, the employment gauge spiked to 69.6 from 67.00, while inventories ticked higher to 65.4 from 65.3. Meanwhile, deliveries recovered moderately and rose to 37.9, but remained below the 50 mark, indicating that firms are struggling to meet pent-up demand.
