Canada’s Ivey purchasing managers’ index in November fell to the lowest this year, adding to evidence the country’s economy is struggling to emerge from a second-half slump.
The purchasing gauge fell to 47.5 in November on a seasonally adjusted basis, following an October reading of 58.3 in October, according to a statement on the website of Western University’s business school. The reading is the lowest since July 2011 and only the second time it’s dropped below 50 this year, the other being 49 in July.
While a separate Ivey measure released today on employment was 55.1, down only slightly from 56.4 in October, the larger drop in the main index may foreshadow weaker jobs growth, said Jonathan Basile of Credit Suisse.
“This sets up the potential for disappointment on the job front,” Basile, an economist at Credit Suisse in New York, said in a note to investors. “We would not be surprised if the employment picture becomes more uneven, to include outright declines, in coming months.”
Statistics Canada reported last week the country’s economic expansion slowed to a 0.6 percent pace in the third quarter, with business investment and exports falling the fastest since the last recession in mid-2009.
The Ivey inventory gauge rose to 55.6 in November from 48.2, while the Ivey price measure increased to 62.9 from 53.1.
Readings of more than 50 in the main Ivey index indicate purchasing by governments and companies advanced.