Royal Bank of Canada (RBC), the Supply Chain Management Association (SCMA) and Markit Economics released their RBC Canadian manufacturing PMI on Tuesday. The index rose to 49.4 in February from 49.3 in January. It was the highest level since August 2015.
The rise was driven by a softer decline in output and new orders.
"The U.S. expansion alongside a more competitive Canadian dollar is continuing to drive stronger export sales and stabilize manufacturing conditions," RBC senior vice-president and chief economist, Craig Wright, said.