Canadian manufacturing sales rebound while volumes stay flat
Canadian manufacturing sales rose 1.5 per cent in August to 79.9 billion Canadian dollars, led by primary metals and chemicals. Sales volumes were unchanged after price adjustment. Transportation equipment moved in the opposite direction, with declines in vehicles, parts and aerospace production. The monthly rebound followed July’s fall, while inventories edged higher and the value of outstanding orders barely changed.
Economics & Markets··Night
Canadian factory sales recover after July’s fall
Canadian manufacturing sales rose in August after declining the month before. Statistics Canada, the national statistical agency, released the figures on October 15. Primary metals and chemicals led the recovery. The monthly survey covers manufacturers across the country and shows changes in the value of their sales alongside a separate measure that removes the effect of changing prices.[1], [2]
Total sales increased 1.5 per cent to 79.9 billion Canadian dollars, following July’s 0.3 per cent decline. 12 of the 21 manufacturing subsectors recorded gains. Current-dollar sales were 14.2 per cent higher than a year earlier. Yet constant-dollar sales were unchanged from July, while the industrial product price index rose 1.3 per cent during August, distinguishing the monetary rebound from the volume result.[1]
Metals and chemicals post strong sales gains
Primary metals sales rose 14 per cent to 7.6 billion Canadian dollars. Their increase at constant prices was 9.1 per cent, while current-dollar sales were 27.8 per cent above a year earlier. Non-ferrous metals other than aluminum contributed to the monthly increase. The subsector’s volume gain was therefore smaller than the increase in the money received from sales during August.[1]
Chemical sales increased 4.4 per cent to 6.2 billion Canadian dollars after falling 4.4 per cent in July. Their constant-dollar increase was 0.4 per cent. Chemical-product exports rose 12.7 per cent during the month, and manufacturing sales in the subsector were 16.7 per cent above a year earlier. Both leading subsectors recorded smaller gains after the influence of prices was removed.[1]
Transport equipment falls as inventories edge up
Transportation equipment sales fell 2.6 per cent to 12 billion Canadian dollars. Motor vehicle sales declined 4 per cent and parts sales 4.2 per cent, with the agency pointing to extended summer factory shutdowns and weak seasonal demand. Aerospace production fell 4.8 per cent to its lowest level since February, providing a further decline within the transportation side of manufacturing.[1]
Quebec manufacturing sales increased 4 per cent to 21 billion Canadian dollars, with 13 of 21 subsectors growing. National inventories edged up 0.2 per cent to 127.7 billion Canadian dollars. The inventory-to-sales ratio fell by 0.02 to 1.60. Unfilled orders were broadly unchanged at 134.2 billion Canadian dollars, describing work still outstanding alongside the month’s completed sales.[1]
