CORRECTED – UPDATE 1-Canada Nov Ivey purchasing managers index 57.5

(Corrects second paragraph to show the market forecast was 56,
not 58)

* Employment, prices components above 50 in November

* Index seen at 50-60 range going into 2011 -TD
(Adds details)

TORONTO, Dec 6 (BestGrowthStock) – Purchasing activity in the
Canadian economy ticked slightly higher in November, the Ivey
Purchasing Managers Index showed on Monday, suggesting the
recovery remains intact but at a subdued pace.

The index rose to 57.5 in November from 56.7 in October.
This was just ahead of the market forecast of 56. (ECONCA: )

The PMI can be used to measure business optimism and
forecast growth. A reading higher than 50 indicates activity
increased from the preceding month and a lower reading reflects
a slowing or decrease.

The employment and prices components of the index stayed
above 50 for the month, while inventories and supplier
deliveries were below 50.

“Given the deceleration in a wide range of economic
indicators, one would expect that the Ivey PMI will remain in
the 50-60 range that is consistent with a gradual recovery
through the balance of the year and into 2011,” David Tulk,
senior macro strategist at TD Securities, wrote in a note.

The reading comes after recent data showed Canada’s economy
gained fewer jobs than the market expected, while a separate
report showed the economy disappointed in the third quarter
with the weakest growth rate in a year. [ID:nN03271210]

Markets will next look to Tuesday’s Bank of Canada interest
rate announcement. All 44 forecasters polled by Reuters expect
the Bank of Canada to keep interest rates on hold at 1 percent
on Dec. 7, but they were divided on the timing of the next hike
in 2011. [CA/POLL]

For details of this month’s index, please see
(Reporting by Jennifer Kwan; editing by Jeffrey Hodgson)

CORRECTED – UPDATE 1-Canada Nov Ivey purchasing managers index 57.5