The pace of growth in the Canadian manufacturing sector edged up in September as companies saw increased demand for their products, while an increase in prices suggested firms were seeing inflationary pressures, data showed on Monday.

The Markit Canada Manufacturing Purchasing Managers' index (PMI), a measure of manufacturing business conditions, rose to a seasonally adjusted 55.0 last month from 54.6 in August. A reading above 50 shows growth in the sector.

The measure of new orders rose to 54.9 from 54.4, with firms citing increased client demand and product development. New export orders grew more slowly, rising to 51.3 from 50.9, and respondents said there less demand from the United States.

Input prices rose to the strongest level in four months at 62.6 from 58.7 as U.S. supply disruptions following Hurricane Harvey raised the cost of raw materials.

Companies also charged more for their products, with the gauge of output prices rising to 55.5 from 54.3.

Manufacturers also cited a supportive economy and were more confident about the year ahead, with the future output gauge up at 68.1 from 65.1.

The Canadian economy's solid performance in the first half of the year has made it a leader among its developed peers but the pace of growth is expected to slow as the year progresses.