In March, the Ivey Purchasing Managers Index (IPMI) increased for the third consecutive month, with most indicators revealing increased spending.
By the end of March, the index stood at 57.8, up from 51.9 in February and 50.8 in January.
The index is calculated monthly by the Richard Ivey School of Business and the Purchasing Management Association of Canada (PMAC). It tracks month-to-month changes in dollars spent by purchasers by collecting the responses to one question: “were your purchases last month in dollars higher, the same or lower than the previous month?”
On the index, a score above 50 indicates an increase in spending, while a score below 50 shows a decrease.
A panel of 175 procurement managers located across Canada provides the information for the index each month.
March’s score was significantly higher than March 2009 (when it was 43.2) but slightly lower than March 2008 (when it was 59).
The IPMI also measures data on employment, inventory, supplier deliveries and prices.
At the end of the month, prices were 61.5, up from 55.9 in January.
The inventory index was 55.2, up from 47.9 a month earlier.
Employment also increased, landing at 51.6. This is the first time this index topped 50 since September 2009.
Finally, supplier deliveries edged downwards to 44.3 from 45.1 in February.
The IPMI is not adjusted for seasonality or inflation.