The Canadian Ivey Purchasing Managers (CIPM) Index is a monthly economic indicator that measures the level of purchasing activity in Canada. The index is based on a survey of purchasing managers from various industries across Canada and is published by the Richard Ivey School of Business.
The CIPM Index is closely watched by economists and traders as an indicator of economic activity and inflationary pressures in Canada. A reading above 50 indicates expansion in the economy, while a reading below 50 indicates contraction. A higher-than-expected CIPM reading can be seen as bullish for the Canadian dollar, as it suggests that the Canadian economy is growing and may lead to higher interest rates by the Bank of Canada in order to manage inflation. Conversely, a lower-than-expected CIPM reading can be seen as bearish for the Canadian dollar, as it suggests a weaker economy and potentially lower interest rates.