OTTAWA (Reuters) - The pace of purchasing activity in Canada cooled in August as input prices moderated, though employment rose to its highest level since last November, according to Ivey Purchasing Managers Index data released on Thursday.
The seasonally adjusted index fell to 56.3 from 60.0 in July. A reading above 50 indicates an increase in the pace of activity. The unadjusted index rose to 56.8 from 52.9.
On an adjusted basis, the measure of prices tumbled to 59.9 from 69.2, suggesting companies may find their margins less squeezed by input costs.
The gauge of employment rose for the third month in a row to 55.9 from 52.6. The reading could bode well for the broader jobs report due on Friday, which has shown a strengthening labor market over the past year. ECONCA
Among the other components of the purchasing managers index, inventories edged up to 57.1 from 55.8, while the contraction in supplier deliveries moderated with the gauge rising to 47.6 from 46.2.
Reporting by Leah Schnurr