Canadian manufacturing sales increased 2.3 percent to C$53.1 billion (US$39.8 billion) in January, led by higher sales in motor vehicles, food and motor vehicle parts, according to Statistics Canada.
Conversely, sales of petroleum and coal products fell 5.9 percent as prices continued to decline in the industry.
Constant dollar sales rose 2.4 percent to their highest level since July 2008, indicating that volumes of goods sold reached levels not recorded since before the 2008-2009 recession.
Sales rose in 16 of 21 industries, representing more than 80 percent of the manufacturing sector.
Motor vehicle sales increased 9.6 percent in January, the highest level since November 2000. The gains in the motor vehicle industry were the result of two key factors: changes in the industry toward higher-end models and the lower value of the Canadian dollar.
Sales of food rose 4.6 percent in January, the highest value ever recorded. The gain in January was the largest one-month increase since October 2013. In addition, the volume of food sold was the highest in more than 10 years. The food industry is usually one of the more stable industries in the manufacturing sector as demand for food products is relatively inelastic and not significantly affected by the economic cycle.
The motor vehicle parts industry recorded a 4 percent increase in sales, the fifth consecutive increase in motor vehicle parts sales, which reached their highest level since December 2006. Gains in the industry were widespread as parts manufacturers capitalized on increased demand from motor vehicle assembly plants.
Partially offsetting the higher sales in most industries was a 5.9 percent decrease in sales of petroleum and coal products. Lower sales reflected a 7.1 percent drop in the price of petroleum and coal products in January. Sales in the industry were down for the eighth consecutive month, reaching their lowest level since August 2004. Over the course of those eight months, sales fell 27.9 percent while prices declined 20.3 percent.
Eight provinces recorded higher sales in January, led by Ontario and Quebec. Increases in these provinces were largely responsible for the total national gain. The only provinces to record declines were Alberta and Nova Scotia.
Sales in Ontario increased 3.9 percent, the eighth increase in nine months and the highest on record for Ontario. The increase reflected gains in the motor vehicle and motor vehicle parts industries, as most of the national activity in these industries occurs in Ontario. In addition, food sales rose 6.9 percent while fabricated metal product sales were up 7.5 percent.
In Quebec, sales were at their highest level since September 2014, rising 1.7 percent. Widespread increases in the food and fabricated metal products industries were responsible for the gain.
Sales in Alberta fell for the sixth time in seven months, largely as a result of lower sales of petroleum and coal products, and fabricated metal products.
