Canada’s Ivey index of business and government spending unexpectedly rose in November.
The gauge increased to 57.5 last month after a reading of 56.7 in October, according to the survey of 175 purchasing managers by the Richard Ivey School of Business in London, Ontario. The result compares with a median estimate of 56.4 in a survey of 16 economists.
Business investment and exports will drive more of Canada’s economic growth in the next two years, as consumer purchases and government spending wane, Bank of Canada Governor Mark Carney predicted Oct. 20. Economic growth slowed to an annualized 1 percent in the third quarter, down from 2.3 percent in the previous three months and slower than the central bank’s prediction of 1.6 percent.
November’s reading is “consistent with a gradual recovery through the balance of the year and into 2011,” David Tulk, an economist with TD Securities in Toronto, said in a note to clients.
Readings above 50 indicate that purchasing expanded during the month.
On a seasonally adjusted basis, the index rose to 59.5 in November from 55.2 during the previous month, according to Peter Buchanan, an economist with CIBC World Markets Inc. in Toronto.
The inventory gauge fell to 41.7 in November from 46.4 in October, signaling stockpiles are falling at the fastest pace in a year. The price index fell to 60, the slowest pace of cost increases in four months.
The supplier-deliveries measure fell to 44 from 50, signaling a rise in shipment times, and the employment index advanced to 54.8 from 51.7, suggesting managers are hiring workers.