The indicator reflects the level of business activity of the industrial sector. More than one and a half hundred managers from different regions and sectors are asked to assess the level of their purchases as compared to the previous month (higher, lower or the same). The value above 50 indicates an increase in purchases, a value below 50 indicates a decrease.
This indicator can be used to measure business optimism and forecast economic growth. Companies increase purchases and spending in response to growing demand for their goods and services.
Release Frequency: monthly.
Release Schedule: 10:00 EST, on the fourth working day of the month following the reporting period.
Source: Purchasing Management Association of Canada, the Richard Ivey School of Business.