1 Min Read
OTTAWA, July 7 (Reuters) - The pace of purchasing activity in Canada accelerated in June as companies increased their inventories and hiring, according to Ivey Purchasing Managers Index data released on Friday.
The seasonally adjusted index jumped to 61.6 from 53.8 in May. A reading above 50 indicates an increase in the pace of activity. The unadjusted index rose to 63.9 from 62.6.
On an adjusted basis, the gauge of employment rose to 52 from 50.4, while inventories climbed to 60.7 from 56.5.
The pick-up in activity coincides with broader growth in the Canadian economy, two years after it was hit by low prices for oil, a major export. The recovery in the economy and recent hawkish comments from the Bank of Canada have markets betting on an interest rate hike next week.
However, the survey of purchasing managers also showed input prices were higher, with the measure increasing to 57.4 from 51.3, suggesting companies' operating margins may be squeezed.
Reporting by Leah Schnurr; Editing by Frances Kerry