Ivey Purchasing Managers Index

The Ivey Purchasing Managers Index (PMI) is a widely recognized economic indicator in Canada that measures the economic activity of purchasing managers. It provides insights into the current state of the Canadian economy by gauging the purchasing intentions and sentiment of managers in various industries.

The Ivey PMI is published by the Ivey Business School at Western University in London, Ontario. It is based on a monthly survey of purchasing managers from a diverse range of sectors, including manufacturing, construction, and services. The survey collects data on factors such as new orders, production levels, supplier deliveries, inventories, and employment.

The index is calculated using a diffusion index methodology. The responses from the survey are weighted based on the size of the respondent’s organization and aggregated to create an overall PMI number. The index is reported on a scale of 0 to 100, where a reading above 50 indicates expansion in economic activity, while a reading below 50 suggests contraction.

The Ivey PMI provides valuable information about the current and future economic conditions in Canada. It is considered a leading indicator as it provides early insights into the direction of the economy. Analysts and policymakers use the Ivey PMI to assess the health of the manufacturing and services sectors, monitor business sentiment, and make informed decisions regarding economic policies.

The Ivey PMI is closely watched by market participants, including investors and traders, as it can impact financial markets. A higher-than-expected PMI reading can be seen as positive for the Canadian dollar and may lead to increased investor confidence. Conversely, a lower-than-expected reading can have a negative impact on the currency.

In summary, the Ivey Purchasing Managers Index is a key economic indicator in Canada that measures the economic activity of purchasing managers across various sectors. It provides valuable insights into the current state of the Canadian economy and is closely monitored by analysts, policymakers, and market participants.