The Ivey Purchasing Managers Index (Ivey PMI) is an economic indicator that reflects the health of the Canadian economy by measuring the level of activity in the purchasing sector.
The index is designed to provide insights into the overall business conditions, signaling the strength of demand for goods and services and offering valuable information for policymakers, investors, and businesses alike.
What is the Ivey Purchasing Managers Index?
The Ivey PMI is published by the Ivey Business School at Western University in collaboration with the Purchasing Management Association of Canada (PMAC).
It is based on a monthly survey of purchasing managers across Canada, covering various sectors, including manufacturing, construction, services, and public administration.
The Ivey PMI is calculated using five main components:
- New Orders
- Inventory Levels
- Production
- Supplier Deliveries
- Employment
A value above 50 indicates expansion in the purchasing sector, while a value below 50 signals contraction.
How to Read the Ivey Purchasing Managers Index
The index is seasonally adjusted to account for fluctuations due to seasonal factors.
The Ivey PMI report typically includes the following information:
- Headline Index: The headline index is the primary measure of the health of the purchasing sector, with values above 50 indicating expansion and values below 50 signaling contraction.
- Sub-indices: The report also provides data on the five main components (new orders, inventory levels, production, supplier deliveries, and employment), allowing for a more in-depth analysis of specific aspects of the purchasing sector.
- Industry Breakdown: The report may include a breakdown of the index by industry, offering insights into the performance of various sectors within the Canadian economy.
When analyzing the Ivey PMI, it is important to consider factors such as historical trends, comparison to other economic indicators, and the potential impact of external factors, such as global economic conditions and government policies.
Why is the Ivey Purchasing Managers Index important?
The Ivey PMI is an important economic indicator for several reasons:
- Early Signal: As a leading indicator, the Ivey PMI provides an early signal of changes in business conditions and overall economic health.
- Demand Indicator: The index reflects the strength of demand for goods and services, offering insights into consumer and business spending.
- Investment Decisions: Investors and businesses can use the Ivey PMI to identify trends and assess the health of various sectors within the Canadian economy, guiding investment decisions and resource allocation.
Who publishes the Ivey Purchasing Managers Index?
The Ivey PMI is published by the Ivey Business School at Western University in collaboration with the Purchasing Management Association of Canada (PMAC).
Data is collected through a monthly survey of purchasing managers across various sectors in Canada.
When is the Ivey Purchasing Managers Index released?
The Ivey PMI is released on a monthly basis, typically during the first week of the following month.
The data is available on the Ivey Business School website, as well as through various financial news outlets and data providers.