OTTAWA, Ont. — Manufacturing shipments rebounded from a sharp 2% 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.

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.

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.

After two months of losses, new orders increased 3.2%, reaching an all-time high of $51.4 billion in July.

The transportation equipment industry provided most of the boost to new orders in July. Motor vehicle manufacturers saw a 17.8% jump, and aerospace products and parts manufacturers were up 13.1%. As a whole, new orders in the transportation equipment manufacturing industry were up 9.4% or $888 million.

Primary metal was one of the few industries with new orders dropping, losing 2.2% or $98 million compared to June.