OTTAWA, June 7 (Reuters) - The pace of purchasing activity in Canada slowed in May as measures of employment and inventories both contracted, according to Ivey Purchasing Managers Index data released on Tuesday.
The seasonally adjusted index fell to 49.4 from 53.1 in April, short of analysts’ expectations for a decline to 51.5. A reading below 50 indicates a decrease in the pace of activity.
The unadjusted index rose to 58.4 from 50.6.
On an adjusted basis, employment pulled back to 49.3 from 49.9, potentially boding poorly for the larger employment report due on Friday. The inventories component fell to 49.6 from 52.3.
Supplier deliveries rose to 53.3 from 46.8 but prices also rose to 63.1 from 53.9.
Reporting by Leah Schnurr; Editing by Bernadette Baum