TORONTO, Nov 3 (Reuters) - The pace of growth in the Canadian manufacturing sector for October hit its strongest level in nearly a year, rebounding from the pull-back in September and helped by an increase in new orders, data showed on Monday.
The RBC Canadian Manufacturing Purchasing Managers’ index (PMI), a measure of manufacturing business conditions, rose to a seasonally adjusted 55.3 last month from 53.5 in September. A reading above 50 shows growth in the sector.
It was the highest reading since November 2013, and the forward-looking new orders index rose to 56.4 from 53.7.
“We saw a strong uptick in Canada’s manufacturing business conditions in October driven by new order growth,” said Craig Wright, senior vice-president and chief economist, RBC.
“Despite the challenges we are seeing in the European and emerging markets, the continued recovery of the U.S. economy should continue to support Canadian exports going forward.”
The seasonally adjusted new export index fell below the survey average, indicating only a subdued pace of expansion.
Last week, the head of Canada’s central bank said that the stronger U.S. economy could pressure the Canadian dollar, but it could also help spur more export business for Canadian businesses.
Reporting by Solarina Ho; Editing by Chizu Nomiyama