A crane is seen on the mountain-backed skyline of Vancouver, British Columbia, Canada September 30, 2020. REUTERS/Jennifer Gauthier/File Photo

TORONTO (Reuters) -Canadian economic activity contracted for a second straight month in May even as a measure of employment increased, Ivey Purchasing Managers Index (PMI) data showed on Thursday.

The seasonally adjusted index edged up to 48.9 last month from 47.9 in April. A reading below 50 indicates a decrease in activity.

The Ivey PMI measures the month to month variation in economic activity as indicated by a panel of purchasing managers from across Canada.

The gauge of employment rose to an adjusted 51.1 from 48.0 in April, while the prices index was at 66.9, down from 70.0.

The unadjusted PMI rose to 53.8 from 52.3.

(Reporting by Fergal Smith)