Ivey comes from the Richard Ivey School of Business and the indicator is the equivalent of the pmi indicator in US, Europe, UK and Australia.
It is a survey based on purchasing managers in the manufacturing industry being asked to respond questions relative to the general business conditions, employment levels in the company, new orders, inventories, etc.
The release is compared with the fifty value, the standard interpretation being that values higher that fifty should signal industry expansion, while values lower than 50 signal industry contraction.
The most important things to take into consideration when looking at the Ivey PMI indicator in Canada are the following:
- release date: monthly, about 5 days after the month ends;
- release time: 14:00 GMT during the North American trading session;
- first tier data;
- brings volatility;
- traders look at contraction/expansion levels.