Canadian manufacturing index holds steady at highest level of year

A monthly gauge of the Canadian manufacturing sector held steady at a 12-month high in November.

The RBC Canadian PMI remained at 55.3 last month, matching a high point set in November last year and again in October.

A measure above 50 indicates the manufacturing sector is expanding.

RBC says the November data put the Canadian manufacturing sector on a pace to have its best quarter in nearly three years.

"November data indicated a strong and accelerated expansion of Canadian manufacturing production," the RBC report says.

"The latest upturn in output volumes was the fastest for three months and much stronger than the average seen since the survey began in late 2010.

RBC also said that new business from abroad rose at the fastest pace since September 2013.

"A number of survey respondents commented on improving demand from export clients, especially those based in the U.S.," the bank said.

The index, published the Royal Bank in association with the Supply Chain Management Association and financial information services company Markit, is based on a questionnaire sent to purchasing executives at more than 400 industrial companies.

It tracks, new orders, output, employment, suppliers' delivery times and stock of items purchased.