UPDATE 1-Canada's Ivey PMI rises in December, but worries persist

Mon Jan 7, 2013 11:42am EST
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* Ivey PMI seasonally adjusted index rises to 52.8 from 47.5

* Analysts expected adjusted reading of 49.5

* Positive reading follows November dip

* Employment falls to 49.2 from 55.1

By Alastair Sharp

TORONTO, Jan 7 (Reuters) - Purchasing activity in Canada rose modestly in December, according to Ivey Purchasing Managers Index data released on Monday, but the reading failed to impress economists as Canada's economy struggles to grow.

The seasonally adjusted index rose to 52.8 in December from 47.5 in November. Analysts polled by Reuters had expected a reading of 49.5.

That was a modest uptick to close out the fourth quarter, but coupled with falls in Ivey's employment, inventories and prices data, painted a less than rosy economic picture.

"Overall, if you look at the sub-indices, the results are not that impressive, especially the employment number, which went below 50 for the first time in seven months," said Krishen Rangasamy, a senior economist at National Bank Financial in Montreal.   Continued...