Purchases by company managers in Canada appeared to move forward last month, according to figures released by the business school out of London, Ontario.
Western University's Ivey School of Business revealed Thursday that its Purchasing Managers' Index (PMI) sank to 50.4 in September, from a burgeoning figure of 61.9 in August. The figure found itself looking up from a number of 59.6 in September 2017.
The school said the September 2018 number indicated that purchases were greater than the previous month.
The Ivey PMI measures month-to-month changes in dollars of purchases as indicated by a panel of purchasing managers have been carefully selected geographically and by sector of activity to match the Canadian economy as a whole. The PMI includes both the public and private sectors and is based on month end data Ivey PMI panel members indicate whether their organizations activity is higher than, the same as, or lower than the previous month across the following five categories: purchases, employment, inventories, supplier deliveries and prices.
Respondents are asked, "Were your purchases last month in dollars higher, the same, or lower than the previous month?" A figure above 50 shows an increase while below 50 shows a decrease.
The index is an economic index which measures the month to month variation in economic activity as indicated by a panel of purchasing managers from across Canada, and is prepared by the Ivey Business School. Using end of the month data, it covers all sections of Canada's economy.
