Canada's Ivey purchasing index gains in August
TORONTO (Reuters) - The pace of purchasing activity in Canada rebounded slightly in August, although other components of the report were more mixed with employment tumbling, according to data released on Friday.
The seasonally adjusted Ivey Purchasing Managers Index rose to 51 in August from 48.4 in July, slightly short of analysts' expectations for 52.1.
The unadjusted index rose to 51.9 from 45.7.
A reading above 50 indicates an increase in the pace of activity. The index retreated below the 50 mark in July for the first time since November.
While the report tends to be volatile month to month, the longer term trend shows a moderation in activity, TD Securities strategist David Tulk wrote in a note.
"This dynamic is broadly consistent with a trough in real GDP growth in the second quarter, which we expect will be followed by a very gradual recovery over the balance of the year and into 2014," he Tulk said.
A measure of employment slumped to 43.6 from 50.4, even as data released earlier on Friday showed the Canadian economy added 59,200 jobs in August.
The purchasing managers data also showed inventories fell to 48.7 from 53.3. Supplier deliveries still showed a slowdown, although the index improved to 45.6 from 38.9. Prices jumped to 60.9 from 52.8.
(Reporting by Leah Schnurr; Editing by Chizu Nomiyama)
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