The Institute for Supply Management’s purchasing managers’ index for US manufacturing rose to a reading of 52.8 in May from the April reading of 51.5. The reading indicates continued expansion, and at a faster pace than April. Readings above 50 indicate growth.

MarketWatch reports the reading edged past its economist survey’s forecast of a 51.8 reading and, though at a three-month high, remains below the 12-month average of 54.9.

The employment portion of the index rose to a reading of 51.7 in May indicating growth. The reading in April was 48.3, indicating contraction.

Separately, the Royal Bank of Canada’s Canadian manufacturing purchasing managers’ index rose for the first time in four months in May, edging up to a reading of 49.8 in May from April’s reading of 49.0. However, the May index remained below the neutral 50.0 threshold.

“It’s encouraging to see a slight improvement in business conditions for Canada’s manufacturing in May, even though significant improvements didn’t generate enough traction to shift the sector into positive growth territory,” said Craig Wright, senior VP and chief economist, RBC. “Moving into the second half of the year, we expect a strengthening US economy and a weakening in currency will fuel demand for Canada's exports, which should have a positive effect on manufacturers.”