OTTAWA, Ont. — Strong shipment activity coupled with lower inventories contributed to a notable drop in the inventory-to-shipment ratio to 1.42 in September from August’s 1.50, the high for the year.

The ratio, calculated by Statistics Canada, has been quite volatile in recent months, the result of ongoing fluctuations in demand and the impacts of several external shocks. Since late 2002, the inventory-to-shipment ratio has been edging up.

The finished-product inventory-to-shipment ratio fell back to 0.44 in September from 0.47. September’s solid rise in shipments surpassed the much smaller decline in finished-product inventories. The trend, which had been rising since mid-2002, has shown a more moderate movement in recent months.

The finished-product inventory-to-shipment ratio is a measure of the time that would be required in order to exhaust finished-products if shipments were to remain at their current level.

For more information or to order further data, contact Statistics Canada at 1-866-873-8789; 613-951-9497; fax: 613-951-9499; manufact@statcan.ca).