Canadian manufacturing business conditions expanded in June at the fastest pace since December 2013, according to the Royal Bank of Canada’s Canadian manufacturing purchasing managers’ index. June’s reading of 53.5 is up from May’s reading of 52.2 and was mainly driven by stronger rates of output and new business expansion. The RBC PMI is a monthly survey conducted in association with Markit, a financial information services company, and the Supply Chain Management Association.

Staffing levels increased at a solid pace in June, extending the current period of manufacturing job creation to five months. Despite an upturn in payroll numbers, stronger demand resulted in the fastest rise in backlogs of work since March.

Canadian manufacturers continued to hire additional staff in June, extending the current period of job creation to five months. The seasonally adjusted employment index rose for the fifth straight month and signaled the fastest expansion of payroll numbers since November 2013, according to the report.

“The second quarter of 2014 ended on a positive note for the Canadian manufacturing sector,” said Cheryl Paradowski, president and CEO of the Supply Chain Management Association. “Stronger business conditions were underlined by the fastest expansion of output so far this year, alongside a solid rebound in client spending. Manufacturers are continuing to recruit additional staff at a solid place, highlighting strong confidence about the outlook for production volumes over the months ahead.”

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