CORRECTED – OFFICIAL-UPDATE 1-Canada’s Ivey index jumps in Feb

(Ivey corrects seasonally adjusted data to 70.8 from 67.9 in
paragraph 6)

* Overall index surges to 69.3 from 41.4 in Jan

* Seasonally adjusted figures provided for first time

* C$ rises to fresh session high
(Adds details)

TORONTO, March 4 (Reuters) – Purchasing activity in the
Canadian economy surged well ahead of expectations in February
from the the previous month, according to the Ivey Purchasing
Managers Index released on Friday.

The index, the joint project of the Purchasing Management
Association of Canada and the Richard Ivey School of Business,
rose to an overall reading of 69.3 in February from 41.4 in
January. Analysts had expected a reading of 51.7.

A reading of 50.0 indicates that activity remained flat
from the preceding month, while a higher reading indicates an
increase and a lower reading reflects a slowing or decrease.

The Canadian dollar (CAD=D4: Quote, Profile, Research) rose to a session high of
C$0.9701 to the U.S. dollar, or $1.0308, after the Ivey data
was released, before paring gains slightly. It was also firmer
than Thursday’s North American session finish of C$0.9722 to
the U.S. dollar, or $1.0286.

The employment, inventories, and prices subindexes all rose
as well, each above the break-even mark. But the supplier
deliveries index slipped to 37 in February, from 40.9 in
January.

On a seasonally adjusted basis, the index was at 70.8. It
was the first time the adjusted measure has been offered, but
there was still some discounting from analysts on the overall
index.

“This marks the first release of the Ivey PMI on a
seasonally adjusted basis. Despite this, the overall ability of
this index to capture swings in the macro backdrop has tended
to be very poor,” said Mazen Issa, macro strategist at TD
Securities, pointing to January’s employment data versus the
Ivey index.

For example, Ivey’s January reading had shown the
employment component dropped below 50, while Canada posted one
of its best monthly employment gains in recent history with
more than 69,000 jobs created.

“Consequently, we put very little emphasis on the Ivey
survey,” said Issa.

The report is broadly similar to the U.S. Institute for
Supply Management.
(Reporting by Ka Yan Ng; editing by Rob Wilson)