After months of cutting back, Canadian businesses increased spending in January.
The recently released Ivey Purchasing Managers Index (IPMI) for the month grew reveals that spending grew to 50.8, up from 48.4 in December 2008.
The monthly benchmark—which is produced by the Richard Ivey School of Business and the Purchasing Management Association of Canada (PMAC)—tracks month-to-month changes in dollars spent by purchasers. It is based on data provided by a panel of 175 procurement managers from across Canada.
On the index, a score above 50 indicates an increase, while a score below 50 shows a decrease.
The IPMI reading in January marks the first time the index increased in four months, suggesting that the economy is back on the growth track.
The IPMI also includes data on employment, inventory, supplier deliveries and prices.
The price index rose most noticeably in January, soaring to 67.8 from 52.5 in December.
The inventory index also increased from 42.2 in December to 44.6 in January.
Employment fell in January, falling from 49.2 to 48.4, while supplier deliveries continued do slide, ending the month at 41.5, down from 42.6 in December.
The IPMI is not adjusted for seasonality or inflation. It reflects responses to one question: "Were your purchases last month in dollars higher, the same, or lower than the previous month?"