Canadian manufacturing business conditions improved at the strongest pace in 11 months in May, according to the Royal Bank of Canada’s Canadian manufacturing purchasing managers’ index. May’s reading of 53.2 is up sharply from April’s reading of 50.1 and March’s survey-low reading of 49.3. The RBC PMI is a monthly survey conducted in association with Markit, a financial information services company, and the Purchasing Management Association of Canada.

“The RBC PMI rose with spectacular fashion in May, signaling the strongest manufacturing expansion in 11 months,” Cheryl Paradowski, president and CEO of the Purchasing Management Association of Canada. “The headline RBC PMI index improved significantly over previously disappointing readings in 2013, reflecting the first increase in output levels in three months and an accelerated rate of new order growth.”

Employment in Canada’s manufacturing sector increased in May, with approximately 22 percent of firms hiring additional staff since April and 10 percent reducing their workforces. The rate of job creation strengthened to a nine-month high and was faster than the series average.

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