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Canadian Manufacturing Shipments Unchanged in May
July 17, 2007
following two months of minimal increases. Inventories have eased down slightly in the past six months after rising considerably between January  ; 2005  ; and September  ; 2006.
In total,  ; 10  ; of  ; 21  ; industries reported a decrease to their inventories in May. Manufacturer's total inventories decreased slightly, largely due to declines in three industries. The sharpest decrease was an  ; 8.8% drop in motor vehicle inventories. Computer and electronic products manufacturers (-5.3%) and primary metal manufacturers (-1.9%) also reported notable inventory declines.
Inventory-to-shipment ratio The inventory-to-shipment ratio remained unchanged in May at  ; 1.27. The ratio had reached a recent low of  ; 1.25  ; in March after peaking at a three-year high of  ; 1.33  ; in October  ; 2006. Over the past five years, the inventory-to-shipment ratio has ranged between  ; 1.22  ; and  ; 1.38. May's result was slightly below the five-year average of  ; 1.28.
The inventory-to-shipment ratio is a key measure of the time, in months, that would be required to exhaust inventories if shipments were to remain at their current level.