OTTAWA (Reuters) - The pace of purchasing activity in Canada slowed in May as the gauge of prices declined, though hiring plans and inventories remained strong, according to Ivey Purchasing Managers Index data released on Wednesday.
The seasonally adjusted index fell to 62.5 from 71.5 in April, while the unadjusted index dipped to 69.5 from 70.4. A reading above 50 indicates an increase in the pace of activity.
The gauge of prices paid by companies declined to 64.4 from 67.8 on an adjusted basis, suggesting firms could feel less pressure on their margins.
The measure of employment rose to 61.2 from 57.0, which could bode well for Friday’s larger jobs report for May. Companies also continued to build their inventories, with the index rising to 55.0 from 52.4.
Reporting by Leah Schnurr; Editing by Chizu Nomiyama