This shows the continuing recovery of euro zone manufacturing at the start of quarter four,

The U.S. manufacturing ISM index should show a decent gain today, reinforcing the market's conviction that the U.S. recovery is for real.

We should have beat them like that the last time. We refused to play their style this time and played to our potential. Having that going for us pretty much set the tone for the entire game.

The sector is benefiting primarily from stronger global growth, although there is more anecdotal evidence this month of improvements in domestic demand.

In Ontario, job losses in manufacturing have accelerated in recent months alongside announced layoffs in the key auto sector. However, Ontario's economy is well diversified and strength in the service sector, which accounts for more than 70% of overall employment and economic activity, should support vehicle sales of about 590,000 units in 2006 - in line with the average of the past two years.

This would be an indication that activity is increasing at more than half the manufacturing firms in the survey, and another sign of growth.