Canada February Ivey Purchasing Index Falls to 51.1

Canada’s Ivey purchasing managers’ index fell further in February than economists forecast, adding to evidence the economy is struggling to accelerate early in 2013.

The index fell to 51.1 on a seasonally adjusted basis from 58.9 in January, according to a statement on the website of Western University’s business school. Readings of more than 50 indicate purchasing by governments and companies advanced. The reading was below the least optimistic of 10 economists surveyed by Bloomberg News.

The data was published at the same time the Bank of Canada announced it had kept the benchmark rate on overnight loans between commercial banks at 1 percent while softening language about tighter policy for the second meeting in a row. Policy makers led by Governor Mark Carney said inflation will “remain low in the near term” in an economy with “material excess capacity.”

Among related indexes, the employment figure increased to 55.8 from 53.8, while the inventories index plunged to 43.6 to 54.4. The supplier delivery measure dropped to 52.2 from 55.8, and the price index rose to 58.8 from 54.

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