Manufacturing continues modest upward trend

OTTAWA — Manufacturing sales in Canada increased 5.5 percent to $41.4 billion in July, building on the small 2.2 percent increase in June.

Surprisingly, the motor vehicle, parts and the primary metals industries were the major contributors to the rise in sales in July, which, reports Stats Canada, still remains 22.4 percent below the $53.3 billion posted a year earlier.

Sales in the vehicle-building sector rose a whopping 48.2 percent in July to $3.3 billion, as some assembly lines resumed production following extended shutdowns in recent months. Parts rose by 30 percent while primary metals increased by 11.2 percent.

Sales in 15 of 21 manufacturing industries increased in July, representing 66 percent of total sales.

Aerospace products and parts (+12.2%) and plastics and rubber products (+9.0%) also made significant gains; while petroleum and coal products (-3.6%) and food (-1.3%) posted declines in July.

Naturally, the boost in vehicle manufacturing helped Ontario post a 11.9 percent hike in July. Excluding those products, Ontario’s increase would have only been 4.1 percent, thanks mainly to primary metals (+34.2%).

Meanwhile, sales fell by 4 percent in Alberta largely as a result of food sales and petroleum and coal product softness; and the growing sector in Manitoba scaled back, falling 4.7 percent.

Inventories Decline:

Manufacturers reported a 2 percent decline in inventories compared with June, with levels falling to $61.3 billion, mainly due to lower petroleum and coal inventories. 


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