The Ivey Business School Purchasing Managers Index (PMI), measuring Canada’s economic activity, increased to 54.5 in October from 54.3 in September.

Economist had forecast the indicator to drop to 51.5 in October.

A reading above 50 signals expansion, while a reading below 50 indicates contraction.

Within sub-indexes, the employment measure rose to 56.1 in October from 53.8 in the previous month, while the prices index climbed to 63.0 from 60.3, the inventories indicator increased to 45.5 from 44.1 and the supplier deliveries gauge jumped to 44.8 from 40.7.