TORONTO (Reuters) - Canadian business purchasing activity increased more than expected in June and at a faster pace than 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 69.6 in June from 62.5 in May. That was better than market expectations for a reading of 62.0.
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 Ivey employment index dropped to 58.2 from 59.3 in the previous month, while the prices index climbed to 84.1 compared with 82.9.
The index is based on figures from 175 members of the Purchasing Management Association of Canada and is roughly equivalent to the U.S. Institute of Supply Management indexes.
Unlike ISM, Ivey makes no distinction between manufacturing and services, and its index is not seasonally adjusted, which can leave it prone to sharp moves.
The Canadian dollar rose to C$1.0162 to the U.S. dollar, or 98.41 U.S cents, from a pre-data level of C$1.0170 to the U.S. dollar, or 98.33 U.S. cents.
(Reporting by Frank Pingue; Editing by Scott Anderson)
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