Canadian manufacturing business conditions continued to expand in June, although at a slower pace than May, according to the Royal Bank of Canada’s Canadian manufacturing purchasing managers’ index. June’s reading of 52.4 is above the 50.0 no-change mark and at the second-highest level since last September, despite a dip from 53.2 in May. The RBC PMI is a monthly survey conducted in association with Markit, a financial information services company, and the Purchasing Management Association of Canada.

“Despite having eased since May, the Canadian manufacturing sector continued to grow moderately in June, representing an improvement from the marginal expansion registered at the beginning of the year. In fact, the average RBC PMI reading for Q2 was the highest since Q3 2012,” said Cheryl Paradowski, president and CEO of the Purchasing Management Association of Canada. “A further rise in new orders, partly reflecting greater client demand, continued to support growth of output and employment in June.”

Employment in Canada’s manufacturing sector continued to rise in June, with one-in-five surveyed firms hiring additional staff since May. Anecdotal evidence linked job creation to the recent expansion in new orders. Overall, the rate of employment growth was solid, but slightly weaker than the nine-month high recorded in the previous survey period. Manufacturing employment was largely unchanged in Alberta and British Columbia, but rose elsewhere.

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