TORONTO, Aug 7 - The pace of purchasing activity in Canada jumped in July after contracting for two months in a row, the Ivey Purchasing Managers Index showed on Thursday.
The seasonally adjusted index rose to a reading of 54.1 from 46.9 in June, topping analysts’ expectations for 53 and the highest level since April. A reading above 50 indicates an increase in the pace of activity.
The unadjusted index edged up to 50.4 from 49.7.
Still, three out of four of the index’s main components remained below the 50 mark, but the pace of contraction moderated in each of them.
The employment index rose to 49.1 from 45.6, while inventories gained to 47.3 from 46.4. Deliveries rose to 45.7 from 44.2. The prices index was the only gauge in expansion territory, rising to 55.2 from 53.6. (Reporting by Leah Schnurr; Editing by Peter Galloway)