TORONTO, (Reuters) – Canadian manufacturing activity grew at an unprecedented pace in October. A pickup in orders and increased hiring helped offset rising supply chain pressures.

The seasonally adjusted IHS Markit Canada Manufacturing PMI (Purchasing Managers’ Index) rose to 57.0 in October, from 57.0 in September. This is its highest reading since March, when it reached a new record of 58.5.

This was the 16th consecutive month in which the PMI was at or above 50, indicating growth within the sector.

Shreeya Ptel, economist at IHS Markit stated in a statement that “Latest PMI data indicated Canada’s manufacturing industry performed strongly.” The pace of new orders rose faster than expected in October. Firms continued to hire staff to fill existing orders.”

In September, the new orders index was 55.3, up from 54.5. The employment measure was 53.2 instead of 52.8.

Canada has recovered all its lost jobs in the pandemic. Last week, the Bank of Canada became the first G7 central bank to end quantitative easing. It signaled that it may raise interest rates by April.

The price measures were stable and the lead time lengthening was more rapid. However, the supplier delivery index fell to the lowest point in its 11-year history.

However, purchases increased at an unprecedented pace as companies sought to prevent future supply shocks. Manufacturers remained positive and the future output index rose to its highest level since April 2018.

Patel noted that Canada’s manufacturing industry has done well in recent years, as reflected by the positive sentiment. According to anecdotal evidence, firms appear ready for another 12 busy months of trading.