OTTAWA (Reuters) - The pace of growth in the Canadian manufacturing sector climbed in July as companies ramped up hiring and production as they received more new orders, data showed on Tuesday.
The Markit Canada Manufacturing Purchasing Managers’ index (PMI), a measure of manufacturing business conditions, rose to a seasonally adjusted 55.5 last month from 54.7 in June. A reading above 50 shows growth in the sector.
The measure of new orders rose and the output gauge climbed to its highest level since March.
Manufacturers saw stronger domestic demand driven by improving economic growth and higher sales to clients in the energy sector, said Tim Moore, associate director at survey compilers IHS Markit.
The Canadian economy looks to be on track for strong second-quarter growth, building on a solid first quarter as the country recovers from the plunge in oil prices two years ago. Oil is a major export for Canada.