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CAN Data: Employment and Ivey PMI

Data out of Canada stunk today. 

First we got the Employment Change data:
August: -11.0K
Forecast: 10.3K
July: 41.7K

So not only did the reading disappoint forecast, it went negative. Remember that last month's data was originally released as 0K, but upon review, StatCan found human error, and released a corrected reading of 41.7K, quite a dramatic revision. 

CAN Employment Change:

(click to enlarge; source:

It should be noted that in the past year, 80% of new jobs in Canada were part-time. This explains the erratic jobs data from month to month, and makes it tough to assess the condition of the labor market. All we can really say is that it has been inconsistent, and unimpressive. 

Then, we got the IVEY PMI reading:
August: 50.9
Forecast 55.7
Previous 54.1

This is a reading of economic health for businesses, including employment, production, new orders, pries, supplier deliveries and inventories. A reading above 50 shows expansion while a reading below reflects contraction.

After rebounding from below 50 to 54.1 in July, the reading is back to the crossroad, at 50.9. This disappointed forecasts for around a 55.7 reading. Although the reading is still above 50 we can see that the trend for IVEY PMI has been declining since 2011. 


(click to enlarge; source: