Canada's seasonally adjusted Ivey purchasing managers' index jumped to 58.0 in August from 52.9 in July. Analysts had expected the index to decrease to 52.0.
A reading above 50 indicates a rise in the pace of activity, below 50 indicates a contraction in the pace of activity.
The supplier deliveries index was up 48.2 in August from 47.6 in July, while employment index climbed to 56.3 in August from 49.1 in July.
The prices index was rose to 66.3 in August from 61.7 in July, while inventories increased to 42.4 from 41.2.