06:50 AM EST, 11/05/2024 (MT Newswires) -- Canada's manufacturing sector has recently returned to expansionary territory -- and at the fastest pace in almost two years, according to S&P Global's PMI, noted Bank of Montreal (BMO).

The increase is especially notable because it comes with improvements in both output and employment, said the bank.

It's very likely that the end of some work stoppages helped, as would a potential rebound in auto production, stated BMO.

Nevertheless, those have been two areas of weakness in the broader economy, so this progress -- if sustained -- could spell a turning point in

Canada's economic recovery, added the bank. Lower interest rates will

add a helping hand in the months ahead.