OTTAWA, July 5 (Reuters) - Canadian economic activity

expanded in June at a faster pace than May and one of the

fastest pace in several months, Ivey Purchasing Managers Index

(PMI) data showed on Friday.

The seasonally adjusted index rose to 62.5 from 52.0 in

April, posting its highest level since April and one of the

highest in several months. 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 fell from May at 52.9, while the

prices index dropped to 62.3, falling below the April number.

The unadjusted PMI was at 62.4, down from 59.1 in April.