An index that tracks activity in manufacturing shows a drop in December, but still indicates the Canadian sector is growing.

The R-B-C Purchasing Managers Index moved to 53.9 last month – but anything above 50 indicates expansion.

R-B-C says business conditions are improving – but the pace is slow.

The Royal Bank of Canada says the collapse of oil prices poses some risk to spending in the energy sector, but lower gasoline prices will help strenghten exports to the U-S and bolster Canadian consumer spending.

The Economic Club of Canada hosts a 2015 Economic Outlook next week. The panel discussion features chief economists from Canada’s big banks – sharing their thoughts about the year ahead.