Purchasing activity increased in February, according to the Ivey Purchasing Managers Index, released today.

The index came in at 62 at the end of February, up from 56.2 at the end of January.

The Ivey PMI asks 175 purchasing managers across Canada if their purchases were higher, the same, or lower than the previous month. A figure above 50 shows an increase while below 50 shows a decrease.

The figure for the same month a year ago was 60.5 and for February 2006 was 59.5.

The index is not adjusted for seasonality or inflation. Seasonal factors tend to add about nearly 7% to this month’s figure, according to TD Securities economic Strategist Jacqui Douglas.

“On a seasonally-adjusted basis, instead of a 5.8 point increase, the true result is closer to a 1 point decrease,” she said. “So the Ivey was weaker than it appeared in February.”

Meanwhile, the employment index for February stood at 53.6, inventories 59.2, supplier deliveries were 44.9 and prices were 74.3.

The index is jointly sponsored by the Purchasing Management Association of Canada and the Richard Ivey School of Business. It is roughly akin to the U.S. Institute of Supply Management index, which released its numbers yesterday.