The Royal Bank of Canada’s Canadian manufacturing purchasing managers’ index rose to a reading of 51.5 in March, up from 49.4 in February and above the 50-point no-change level for the first time in eight months. Although pointing to only a moderate improvement in business conditions, the index was the highest since December 2014.

“The low Canadian dollar contributed to further improvement in export volumes during the first quarter of 2016 and a return to growth in the manufacturing sector,” said Craig Wright, senior VP and chief economist, RBC. “In the remainder of 2016, we expect manufacturing conditions to continue to improve, driven by firm US domestic demand and a weaker Canadian dollar, which will drive demand for exports of autos, consumer goods, machinery, equipment and lumber.”

Manufacturers continued to report cautious job hiring strategies at their plants, according to the report. However, the latest survey indicated that overall payroll numbers stabilized in March, thereby ending an eight-month period of falling workforce levels.

The RBC PMI is a monthly survey conducted in association with Markit, a financial information services company, and the Supply Chain Management Association. It is based on data compiled from monthly replies to questionnaires sent to purchasing executives in more than 400 industrial companies.