TORONTO, Jan 7 (Reuters) - Canadian economic activity

expanded at its fastest pace in five months in December as

employment and inventories climbed, Ivey Purchasing Managers

Index (PMI) data showed on Tuesday.

The seasonally adjusted index rose to 54.7 from 52.3 in

November, posting its highest 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 edged up to an adjusted 55.3 from

54.6 in November, while the inventories index was at 55.2, up

from 50.1.

The unadjusted PMI fell to 44.3, its lowest level since

December 2023, from 49.7.