ISTANBUL

Canada’s manufacturing economy expanded at a faster rate in October, supported by a first increase in output in more than a year, S&P Global said Friday in a report.

"Amid reports of steadily improving market demand, new business rose marginally, and firms continued to take on additional workers," it said.

"Inflationary pressures weakened, with costs rising at a slower pace and output charges only marginally higher in October," it added.

The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) remained above the crucial 50 neutral level by coming in at 51.1 in October -- up from 50.4 in September and climbing to its highest level in 20 months.

"October marked a relatively positive month for Canada’s manufacturing economy, with solid increases in output and employment both stand out statistics from the latest survey data," Paul Smith, an economics director at S&P Global Market Intelligence, said in the report.

"Firms bolstered their production in anticipation of growth in the months ahead, with warehouse inventories increasing marginally ahead of expected order gains," he added.