By Fergal Smith

TORONTO (Reuters) -The downturn in Canada’s manufacturing sector eased in October as output and new orders, which have been held back by trade uncertainty, declined at a slower pace, data showed on Monday.

The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) rose to 49.6 last month from 47.7 in September, posting its highest level since January. A reading below 50 indicates contraction in the sector.

“October’s survey pointed to a relative improvement in the performance of Canada’s manufacturing sector,” Paul Smith, economics director at S&P Global Market Intelligence, said in a statement. “Although operating conditions continued to deteriorate, they did so only fractionally as both production and new orders moved towards stabilisation.”

The output index

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