TORONTO, (Reuters) – Growth in the Canadian manufacturing sector accelerated in June to its fastest pace in more than seven years, data showed on Tuesday, hitting the highest since the survey began in October 2010 as output and new orders rose.
The IHS Markit Canada Manufacturing Purchasing Managers’ Index (PMI), a measure of manufacturing business conditions, rose to a seasonally adjusted 57.1 last month from 56.2 in May.
A reading above 50 shows growth in the sector.
Output rose to 56.1, its highest since January, from 54.0 in April. It was boosted by increased capacity and rising workloads, IHS Markit said.
New orders climbed to the highest level since November 2013 at 57.7 from 56.6 the month before.
“Survey respondents commented on a general upswing in customer demand and ongoing efforts to boost production capacity,” said Tim Moore, associate director at IHS Markit.
“Manufacturers also suggested that part of the rise in new work reflected efforts by clients to complete orders and boost their inventories in advance of surcharges on steel and aluminum,” Moore said.
Canada struck back at U.S. steel and aluminum tariffs on Friday, vowing to impose punitive measures on C$16.6 billion of American goods.
Reporting by Fergal Smith; editing by Susan Thomas