TORONTO, Aug 1 (Reuters) - The pace of growth in the Canadian manufacturing sector picked up to its best level in eight months in July as gauges of new orders and employment improved, data showed on Friday.
The RBC Canadian Manufacturing Purchasing Managers’ index (PMI), a measure of manufacturing business conditions, rose to a seasonally adjusted 54.3 last month from 53.5 in June. It was the highest level since last November.
A reading above 50 indicates growth in the sector.
“Canada’s manufacturers kicked off the second half of 2014 on stronger footing, clearly benefiting from improving global economic activity – it’s encouraging to see the momentum,” said Paul Ferley, assistant chief economist at RBC.
“With the U.S. economy pushing ahead, we expect this trend to continue.”
The forward-looking new orders component rose to 55.2 from 54.1, while the employment measure gained to 53.8 from 52.6.