-Bank of Canada
Canada's purchasing activity rose in June at a slower pace than expected, retreating from its high reached in the preceding month. Ivey PMI came in at 55.9, with a reading above the 50-mark threshold indicating expansion. The slower growth followed an increase to 62.3 in May, the highest level in 19 months. Ivey PMI measures a monthly changes in economic activity based on a survey of purchasing managers from across Canada. The reading includes both the public and private sectors and consists of five components, including purchases, employment, inventories, supplier deliveries and prices.
Meanwhile, the Bank of Canada's business outlook survey showed a diverging outlook across regions, as the economy being stuck between robust US demand that boosts economic outlook and lower crude prices that continue weigh on the energy producing regions. Yet, BoC Governor Stephen Poloz expected the economy to begin to recover in the second quarter and then gather momentum in the middle of the year. Economists remained doubtful concerning such a rosy outlook, particularly after April's disappointing GDP data. The Canadian economy contracted 0.1% in the reported month, marking the first decline in a row. The central bank is due to release its next interest rate announcement coupled with the Monetary Policy Report on July 15.
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