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
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%.
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.
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.