Canada's Ivey PMI index unexpectedly fell in November

Thu Dec 6, 2012 11:35am EST
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By Solarina Ho

TORONTO (Reuters) - Purchasing activity in Canada unexpectedly fell in November, according to Ivey Purchasing Managers Index data released on Thursday, the latest report to suggest economic weakness has carried into the fourth quarter.

The seasonally adjusted index fell to 47.5 in November from 58.3 in October. Analysts polled by Reuters had expected an adjusted reading of 58.6.

"It's been surprisingly resilient over the prior few months. I guess the pull-back in November is a little bit more consistent with the recent data we've seen in Canada," said Benjamin Reitzes, senior economist at BMO Capital markets.

"We've already seen weak GDP numbers a couple of months in a row and the Ivey was oddly strong, so maybe it's just a bit of a catch-up on that front."

The seasonally unadjusted index dropped to 46.4 from 58.3.

A reading below 50 on the index data indicates that the pace of activity fell from the previous month.

"This is the lowest reading in the PMI in just over a year and is consistent with contracting economic activity," Mazen Issa, a macro strategist at TD Securities, wrote in a research note.

He added the details of the report were "less alarming" with employment still above the 50 mark at 55.1, down slightly from 56.4 in October.   Continued...