Canada’s Ivey Purchasing Index Rises for a Second MonthGreg Quinn
Canada’s Ivey purchasing managers’ index rose for a second month in January as a measure of delivery times reached the highest in almost four years, signaling a rebound in economic growth.
The index rose to 58.9 in January from 52.8 in December and 47.5 in November, exceeding all 12 forecasts in a Bloomberg economist survey that had a 53.9 median estimate. Readings of more than 50 in the survey by Western University’s business school in London, Ontario indicate purchasing by governments and companies advanced.
Canada’s annualized economic growth rate will quicken to 1.8 percent this quarter after slowing to 0.6 percent in the third quarter as exports and investment slumped, according to a separate Bloomberg survey last month. Recent reports have shown the economy grew at the fastest pace in seven months in November while the jobless rate fell to a four-year low in December.
“Recent trends have been positive, suggesting a pick-up in growth in early 2013 after a disappointing second half last year,” said Krishen Rangasamy, senior economist at National Bank Financial in Montreal.
All related indexes in today’s report were above the 50 level. The supplier delivery measure rose to 55.8 from 47.8, the highest in Bloomberg figures dating to March 2009. The inventory measure grew to 54.4 from 42.4 while the employment figure increased to 53.8 from 49.2. The price index fell to 54 from 61.3.