Key facts
- Canada's Ivey Purchasing Managers Index (PMI) increased to 64.3 in August, up from 55.1 in July.
- The August reading marks the highest level for the seasonally adjusted index since May 2022.
- The employment gauge within the PMI rose to 55.0 in August, up from 52.2 in July.
- The index measuring prices surged to 80.4 in August, an increase from 75.5 in the previous month.
- The unadjusted PMI also saw an increase, moving to 62.7 from 54.1.
Canadian economic activity experienced a significant acceleration in August, as indicated by the Ivey Purchasing Managers Index (PMI) data. The seasonally adjusted index climbed to 64.3, its highest point since May 2022, surpassing the 55.1 recorded in July. This expansion was driven by increases across several key economic indicators.
The employment component of the PMI rose to 55.0 from 52.2 in July, signaling job growth. Concurrently, the prices index saw a substantial jump to 80.4, up from 75.5, indicating heightened inflationary pressures. The unadjusted PMI also reflected this growth, increasing to 62.7 from 54.1.
The Ivey PMI, prepared by the Ivey Business School, measures month-to-month variations in economic activity across Canada based on a panel of purchasing managers. A reading above 50 signifies an increase in economic activity. The index has demonstrated predictive power for forecasting Canadian macroeconomic activity.