How is the Ivey Purchasing Managers Index different from the American one?
The Ivey PMI is substantially different from the ISM index. The Ivey PMI is based on end of month data, is based on one question only: “Are your purchases (in dollars) higher, the same, or lower than the previous month?” and is not adjusted for seasonality or inflation and covers the complete Canadian economy, incuding the public and private sectors. The US indexes on manufacturing and services are based on mid-month data; factor in the responses to a combination of five questions and adjust for seasonality. Both the US and Ivey PMI reflect month to month changes and use the 50 line as the critical reference. Therefore, the Ivey PMI will give the impression of “jumping around more” than its US counterparts. Nevertheless, it represents pure data which in combination with other economic indicators provides a valuable insight into Canadian economic activity.
