Manufacturing shipments rebounded from a sharp  ; 2.0% drop in June, gaining  ; 2.3% to  ; $50.0  ; billion in July, the highest level since March. Most of the strength in July came from a return to more normal shipment levels by motor vehicle manufacturers following a sharp decrease in June.
Manufacturing shipments have been heavily influenced by fluctuations in the transportation equipment industry over the past several months. Excluding the motor vehicle and parts industries, shipments advanced  ; 0.4% in July for the fifth gain in the last six months.
Using constant dollars, which take price fluctuations into account, the volume of manufacturing shipments increased  ; 4.3% to  ; $46.1  ; billion. This was the eighth increase in the past ten months, pushing the volume of shipments to the highest level since December  ; 2005. Additionally, the  ; 4.3% jump was the largest increase in almost four years.
Although the bulk of the increase in July came from transportation equipment manufacturers, on an industry-by-industry basis,  ; 12  ; of the  ; 21  ; manufacturing industries increased in July, representing about  ; 63% of total shipments.
Durable goods manufacturers reported a  ; 3.7% increase in shipments, the first increase in four months. The transportation equipment industry accounted for most of the gains. Shipments of non-durable goods were up  ; 0.7%, gaining for the fifth time in six months as petroleum and coal shipments resumed their upward march.
New orders advanced for the first time in three months, gaining  ; 3.2% and jumping to a record high in July. Unfilled factory orders continued to mount, increasing  ; 2.9% compared to June.
Motor Vehicle Industry Bounces Back The motor vehicle industry rebounded  ; 17.6% in July to levels more in line with norms and that more properly reflect timing shifts associated with summer plant shutdowns. Over the first seven months of  ; 2007, motor vehicle shipments were  ; 0.7% higher than in the same period in  ; 2006.
Petroleum and coal product manufacturers reported a  ; 3.2% increase in shipments in July. This was the fifth increase in the past six months, and brought shipments to the highest level since August  ; 2006. After weakening in the second half of  ; 2006, petroleum and coal shipments have been trending upwards throughout  ; 2007.
On the down side, primary metal shipments lost ground for the second time in three months, dropping  ; 2.6%. Prices dropped  ; 3.8%, plus a labour dispute at a major primary metal factory, though resolved by the end of the month, negatively impacted shipments in July.
By Province Provincial manufacturing results were evenly split between gains and losses in July. However, the resurgence in Ontario's transportation equipment industry helped to pull shipments up as a whole.
Ontario reported a strong  ; 5.2% jump in shipments after decreasing  ; 3.9% in June. The transportation industry, which accounts for over  ; 30% of Ontario's manufacturing base, rebounded  ; 14.6% in July following three months of decline capped by a  ; 9.5% plunge in June.
Nine of Canada's top ten motor vehicle manufacturers are located in Ontario.
Some of the gains in Ontario were offset by a downturn in neighboring Quebec. Shipments decreased for a third consecutive month, giving up most of the gains reported earlier in the year. Quebec's shipments of transportation equipment did not experience the same rebound as those in Ontario, dropping  ; 3.5% for the third decrease in four months.
Primary metal manufacturers in Quebec also reported poor shipment results in July, down  ; 8.0%. A month-long strike at a major