Value of shipments jumps in October

OTTAWA — The value of shipments by Canadian manufacturers surpassed expectations in October, rising 2.1% on surging automobile production.

October’s shipments totaled $38.278 billion, up from $37.482 billion during September, according to a Statistics Canada monthly survey of manufacturing. All figures are seasonally adjusted.

The stronger-than-expected result may be a harbinger of increased exports in an October trade report expected today. This could boost demand for the dollar, economists said.

However, the inventories-to-shipments ratio fell to 1.31 from September’s 1.34, the beginning of a downward trend, StatsCan said. A declining inventory-to-shipments ratio shows manufacturers are drawing down stockpiles to meet demand.

There were increases in 13 of 22 manufacturing groups, representing 68.3% of the total value of shipments. Growth was spurred by a 12.7% increase in motor vehicle shipments and a 4.7% increase in auto parts and accessories. The overall increase of shipments in the automotive sector was 10.0% over September following the introductions of new models and the resolution of summertime strikes at General Motors Corp., StatsCan explained.

The monthly gain follows a “four-month period of volatility,” said the agency.

In addition to automotive shipments, there were gains of 3.1% in electronics products and 2.9% in the value of wood shipments. Growth was offset in part by a 1.5% decrease in the value of food shipments and a 4.4% drop in the value of machinery shipments.

StatsCan said the value of inventories climbed 0.1% to $50.251 billion from $50.217 billion, rising for the seventh consecutive month mainly because of an increase in stockpiling of automotive and aircraft parts.


Have your say


This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.

*