TORONTO (Reuters), Despite the fact that restrictions on the coronavirus pandemic were eased, demand conditions improved and the restriction to control it eased, Canadian manufacturing activity grew at a record rate in March. However, rising costs have been exacerbated by the Russia-Ukraine conflict, according to data released Friday.

The S&P Global (NYSE:) Canada Manufacturing Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 58.9 in March from 56.6 in February, posting its highest level in the 11-year history of the survey. The sector is experiencing growth if the reading exceeds 50.

“Canada’s manufacturing sector again enjoyed a bustling month of trading in March,” Shreeya Patel, an economist at S&P Global said in a statement. “Key factors for growth were strong uplifts, new orders, and purchases.”

The output index climbed to the highest point since March 2013 and new orders also grew.

Higher sales were attributed by manufacturers in part to the relaxation of pandemic restrictions, S&P Global said. Ontario, Canada’s largest province, has dropped its mandate to use masks in all locations.

However, worries about delivery delays and input shortages led to unprecedented stockpiling. The input price index rose to an all-time high of 78.6, a survey record, from 70.1.

Patel stated that prices will rise at an elevated rate for the remainder of this year because of increased demand and knock-on effects from the conflict in Ukraine.

The oil prices have risen due to Western sanctions against Russia for its invasion of Ukraine. Moscow refers to its Ukraine actions as a “special military operations”.