UPDATE 1-Canada's Ivey purchasing index picks up in Sept

Fri Oct 4, 2013 10:40am EDT
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TORONTO Oct 4 (Reuters) - The pace of purchasing activity in Canada picked up modestly in September as employment rebounded, according to Ivey Purchasing Managers Index data released on Friday.

The seasonally adjusted index rose to 51.9 from 51.0 in August, slightly short of analysts' expectations for 52.9.

A reading above 50 indicates an increase in the pace of activity. This was the second month in a row the index has shown the sector is expanding, after retreating below 50 in July.

The unadjusted index rose to 59.4 from 51.9.

"Though not always the best predictor of the wider economy, the trend in the Ivey is more or less consistent with a midyear soft patch followed by what we would expect to be a gradual move higher over the end of the year and into 2014," David Tulk, chief Canada macro strategist at TD Securities, wrote in a research note.

Ivey's gauge of employment pushed back into expansion territory, jumping to 53.5 from 43.6. Its measure of inventories rose to 54.2 from 48.7. But supplier deliveries retreated slightly to 45.3 from 45.6.