TORONTO, May 3 Reuters Canadian manufacturing activity grew for the 10th straight month in April as production and new orders climbed, with the pace easing only slightly from the previous months record level, data showed on Monday.

The IHS Markit Canada Manufacturing Purchasing Managers index PMI dipped to a seasonally adjusted 57.2 in April from 58.5 in March. It was the third highest reading in the 1012year history of the survey. Marchs level was the highest.

The index has been above the 50 threshold, which shows growth in the sector, every month since last July.

Latest PMI data revealed a confident start to Q2, Shreeya Patel, an economist at IHS Markit, said in a statement. Despite moderating form Marchs nearsurvey peaks, output and new order growth were robust.

The measure of output dipped to 55.0 from 57.7 in March, while the new orders index was at 56.9, down from 58.0. Growth in new orders was helped by government stimulus policies, IHS Markit said, pointing to anecdotal evidence.

Last month, Canadian Prime Minister Justin Trudeaus government lined up billions in new spending to provide emergency support during a virulent third wave of COVID19.

Still, tightening of economic restrictions has weighed on sentiment. It was below the longrun trend level, and together with port congestion has led to another lengthening in supplier delivery times, IHS Markit said.

In addition, the data showed output prices rising at the fastest pace on record. Higher raw…