Ivey PMI s.a.

The seasonally adjusted Ivey PMI is a monthly Canadian survey indicator showing whether purchasing activity is rising or falling compared with the previous month.

Economic IndicatorsModerate volatilityIvey PMI s.a.Ivey PMI seasonally adjustedCanada Ivey Purchasing Managers IndexPMI

Full explanation

The Ivey PMI is a monthly survey-based indicator of Canadian business activity. It asks a panel of purchasing managers whether their organizations' dollar value of purchases was higher, lower or unchanged versus the previous month. The seasonally adjusted version removes typical calendar and seasonal patterns to make month-to-month comparisons easier. Readings above 50 indicate purchases generally increased from the prior month, while readings below 50 indicate they generally decreased.

Why traders watch it

Traders watch the Ivey PMI as a timely signal of Canadian demand and business momentum before many official activity data are released. It can affect expectations for Bank of Canada policy, Canadian bond yields and CAD when it differs materially from forecasts.

Market interpretation

CAD foreign exchange
A surprise can move CAD if it changes views on Canadian growth or Bank of Canada policy expectations.
Canadian government bonds
Stronger or weaker activity signals can affect front-end and intermediate yields through rate-expectation channels.
Canadian equities
The release can influence cyclical-sector sentiment, especially when it confirms or contradicts other activity data.

Stronger vs weaker outcomes

A stronger-than-expected reading may point to firmer Canadian activity and potentially support CAD or yields if it changes rate expectations. A weaker-than-expected reading may suggest softer activity, though the market response can depend on inflation, employment data and broader risk sentiment.

Stronger than expected

A higher-than-expected reading may suggest stronger purchasing activity and firmer near-term business momentum.

Weaker than expected

A lower-than-expected reading may suggest softer purchasing activity and weaker near-term business momentum.

In line with expectations

For the Ivey PMI, 50 is the broad dividing line between expanding and contracting purchase activity versus the prior month.

Typical volatility

Moderate. PMI surveys are diffusion-style indicators and do not measure the exact size of output or GDP growth. Single-month moves can be noisy, and the seasonally adjusted headline should be read alongside the unadjusted data and sub-indexes such as employment, inventories, supplier deliveries and prices.

Trading considerations

  • Compare the headline with the 50 threshold and with the market consensus, not just the prior reading.
  • Check whether the move is confirmed by sub-indexes such as employment, prices and supplier deliveries.
  • Treat one-month swings cautiously because survey indicators can be noisy.
  • Consider the release alongside Canadian labour-market, inflation and GDP data.

Educational guidance only — never a trading signal or recommendation.

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