Canadian manufacturing business conditions expanded in March at the fastest pace since December 2013, according to the Royal Bank of Canada’s Canadian manufacturing purchasing managers’ index. March’s reading of 53.3 is up from February’s reading of 52.9 and indicates a solid pace of expansion across the manufacturing sector. The RBC PMI is a monthly survey conducted in association with Markit, a financial information services company, and the Supply Chain Management Association.

Manufacturing employment in Canada also rose to the highest level in three months. However, the pace of job creation remained weaker than the average seen since the survey began three-and-a-half years ago, according to the report.

“Manufacturers reported a welcome recovery in new order volumes, helped by stronger export demand, and this in turn supported job creation during March,” said Cheryl Paradowski, president and CEO of the Supply Chain Management Association. “There were signs that supply chain disruptions held back production growth and caused unfinished work to accumulate in March, although subsequent efforts to reduce backlogs may well boost output levels in the coming months. Input prices meanwhile continue to rise sharply in the wake of the weakening exchange rate.”

The RBC PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in more than 400 industrial companies.