Canada Purchasing Managers Cut Spending in JulyAndrew Mayeda
Canada’s purchasing managers reduced spending in July for the first time this year, according to a gauge released today by Western University’s business school.
The Ivey Purchasing Managers Index fell to 48.4 in July on a seasonally adjusted basis, the lowest since November, following a June reading of 55.3, according to a statement on the university’s website. Readings of more than 50 indicate purchasing by governments and companies increased.
Weaker output by the nation’s oil and gas producers in recent months, along with the impact of flooding in Alberta, a construction strike last month and concerns that the global market for potash may deteriorate suggest the economy will struggle to match its 2.5 percent first-quarter gain over the rest of the year.
The Ivey Employment Index was little changed in July at 50.4, while a gauge of inventories rose to 53.3, from 51.6 in June, according to the release.
A gauge of prices fell to 52.8 last month, the lowest since May 2009, from 59 in June. The supplier deliveries index dropped to 38.9 in July from 39.8 the month before.