Royal Bank of Canada (RBC), the Supply Chain Management Association (SCMA) and Markit Economics released their RBC Canadian manufacturing PMI on Monday. The index rose to 49.3 in January from 47.5 in December.

The rise was driven by a softer decline in output, new business and employment.

"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," RBC senior vice-president and chief economist, Craig Wright, said.