The Ivey Business School Purchasing Managers Index (PMI), measuring Canada’s economic activity, rose to 54.2 in July from an unrevised 52.4 in June. That was the highest reading since May.

Economists had expected the gauge to hit 53.0.

A figure above 50 shows an increase while below 50 shows a decrease.

Within sub-indexes, the employment measure climbed to 56.6 in July from 52.7 in June and the prices indicator surged to 59.2 from 55.0, while the inventories index dropped to 46.9 last month from 50.9 in the prior month and the supplier deliveries gauge fell to 46.0 from 48.9.