The Ivey Business School Purchasing Managers Index (PMI),
measuring Canada’s economic activity, surged by 10.5 points to 62.5 in June from
an unrevised 52.0 in May. The latest reading indicated the private
sector’s activity expanded for the 11th straight month in June and at a faster pace than in the previous
month.
A reading above 50 signals expansion, while a reading below
50 indicates contraction.
Economists had forecast
the indicator to rise to 53.0 in June.
According to the report, the inventories measure
rose by 3.6 points to 52.7, returning into the expansion
territory after a one-month growth. The deliveries gauge increased by 0.7 points
to 48.6, indicating a decrease in deliveries for
the third month in a row. Meanwhile, the employment index fell by 3.5 points to 52.9,
indicating continuing growth in employment albeit
at the weakest pace in four months. The prices indicator dropped
by 1.2 points to 62.3, indicating prices continued to advance in June albeit at a
softer pace than in the previous month.