TORONTO, June 6 (Reuters) - Canadian economic activity

expanded in May at the slowest pace in 10 months as a measure of

inflation picked up, Ivey Purchasing Managers Index (PMI) data

showed on Thursday.

The seasonally adjusted index fell to 52.0 from 63.0 in

April, posting its lowest level since July. A reading above 50

indicates an increase in activity.

The Ivey PMI measures the month to month variation in

economic activity as indicated by a panel of purchasing managers

from across Canada.

The gauge of employment was unchanged from April at 56.4,

while the prices index rose to 63.5, its highest level since

December, from 62.4.

The unadjusted PMI was at 59.1, down from from 65.7 in

April.