* PMI at 62.5 in August
* Exceeds market expectations of 58.3
* Index was at 62.8 in July
By Solarina Ho
TORONTO, Sept 7The pace of purchasing activity
in Canada slowed moderately in August, according to Ivey
Purchasing Managers Index data released on Friday, but the
numbers still came in stronger than analysts had expected.
The data showed the seasonally adjusted index dipping to
62.5 in August from 62.8 in July. Analysts polled by Reuters had
forecast a reading of 58.3.
Any index reading above 50 indicates that activity picked up
from the preceding month.
Analysts remained cautious, however.
"While the Ivey PMI continues to defy gravity, other
measures of business confidence suggest some prudence may be
warranted," David Tulk, chief Canada Macro Strategist at TD
Securities, wrote in a note.
The Ivey data contrasts with other business surveys,
including the RBC manufacturing PMI, which showed that the pace
of growth had eased slightly in August, touching a five-month
Employment was higher in August than in July, according to
the Ivey survey. Ivey's employment index stood at 58.6, compared
with 54.3 in July. Its inventory index slipped to 53.4 in August
from 55 a month earlier. Deliveries in August were slower, with
that index dropping to 44.3 from 50.3. The prices index stood at
61.8, down from 64.8 in July.
The Ivey PMI's unadjusted index was at 65.2 in August,
compared with 58.8 in the previous month.