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Home » Canada Manufacturing Sales Fall 2.1% in August

Canada Manufacturing Sales Fall 2.1% in August

By    MDM  Staff 
October 15, 2009
More about:  Canada,  Economy
Aerospace, motor vehicles sectors biggest contributors to decline.
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Canadian manufacturing sales declined 2.1% to $40.9 billion in August following a 5.2% gain in July. The aerospace product and parts and motor vehicle industries were the major contributors to the decline in sales. Sales have been relatively level since February, after declining 20.4% between October 2008 and January 2009.
 
Constant dollar manufacturing sales fell 2.3% in August. Sales in 13 of 21 manufacturing industries decreased.
 
Production in the aerospace product and parts industry fell 35.6% to $1.2 billion. Production in the industry has been volatile over the past several months. Excluding the decline in aerospace, manufacturing sales decreased by 0.6%.
 
Manufacturing sales in the motor vehicle industry fell 6.3% to $3.1 billion. The decline in August follows a 48.8% gain by the industry in July. Miscellaneous manufacturing (-10.5%) and chemical manufacturing (-2.5%) also reported decreases.
 
Sales in the petroleum and coal products industry rose 7.2%. The increase in sales was mostly driven by higher prices, as the Industrial Product Price Index for the industry was up 5.8%.
 
By Province
In Quebec, sales decreased 4.0% in August. A 29.0% drop in production in the aerospace product and parts industry largely contributed to the provincial decline. Other durable goods industries also reported declines, including computer and electronic products (-14.1%), miscellaneous manufacturing (-11.1%) and machinery manufacturing (-8.4%). Petroleum and coal products (+5.0%) and food manufacturing (+2.7%) partially offset the declines reported by durable goods industries.
 
Sales in Ontario declined 3.2% in August following an 11.6% gain in July. The decline in August mostly reflected a 7.4% decrease in sales in the motor vehicle industry and a 58.5% drop in aerospace products and parts manufacturing. A 14.3% drop in miscellaneous manufacturing also contributed to the provincial decline.
 
In Alberta, a 4.9% gain in sales largely reflected an increase in the petroleum and coal products industry. Machinery manufacturing (+11.6%) also contributed to the province's strength in August.
 
Newfoundland and Labrador and New Brunswick were other provinces with sales increases. Sales declined in Saskatchewan, Prince Edward Island, Nova Scotia and Manitoba. Sales in British Columbia remained unchanged from July.
 
Inventories
Manufacturers reported a 0.7% decline in inventories compared with July, with levels falling to $61.0 billion. Inventories have been decreasing since January 2009. Inventories of aerospace products and parts (-6.5%), fabricated metal products (-2.3%), machinery (-2%) and food (-1.9%) were responsible for most of the drop in manufacturing inventories.
 
Petroleum and coal products and primary metals were the main offsetting industries in August. Petroleum inventories rose 9.7%, reflecting both price and volume increases. Price increases led to the 2.7% rise in primary metals inventories.
 
The larger percentage decrease in sales relative to the decline in inventories explains the slight rise in the inventory-to-sales ratio from 1.47 to 1.49.
 
More details on Canadian manufacturing in August.
http://www.statcan.gc.ca/daily-quotidien/091015/dq091015a-eng.htm

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