Royal Bank of Canada (RBC), the Supply Chain Management Association (SCMA) and Markit Economics released their RBC Canadian manufacturing PMI on Monday. The index declined to 47.5 in December from 48.6 in November. It was the lowest level since October 2010.

The decline was driven by falls in output volumes and new business.

"Business conditions in the Canadian manufacturing sector fell at a survey-record pace in December as weaker domestic demand and ongoing uncertainty in the energy sector continues to take its toll," RBC senior vice-president and chief economist, Craig Wright, said.