The Royal Bank of Canada’s Canadian manufacturing purchasing managers’ index rose to a reading of 49.3 in January, up from December's survey-record low of 47.5 but below the neutral 50.0 threshold for the sixth consecutive month.

“While Canadian business conditions continued to deteriorate in January, we saw signs of stabilization in the manufacturing industry supported by strong export sales alongside a pick up in the US economy and a weakening Canadian dollar,” said Craig Wright, senior VP and chief economist at the Royal Bank of Canada. “Ontario manufacturing continues to be the bright spot, while the sharp drop in performance in Alberta and BC suggests that heightened economic uncertainty and ongoing declines in capital spending are weighing on the economy.”

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.