For the second month in a row, the Ivey Purchasing Managers Index (IPMI) increased in February.
By the end of the month, the index stood at 51.9, up from 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 from across Canada supply answers each month.
February’s score was up from February 2009 (when it was 45.2) but down from February 2008 (when it was 62).
The IPMI also measures data on employment, inventory, supplier deliveries and prices.
At the end of February, prices were 55.9, down from 67.8 in January.
The inventory index was 47.9, an increase from 44.6 a month earlier.
Employment continued to drop, falling from 48.4 to 41.3 month-over-month.
Finally, supplier deliveries increased from 41.5 to 45.1.
The IPMI is not adjusted for seasonality or inflation.