Manufacturing sales top expectations for November, gaining 1.5 per cent
Ottawa – Canadian manufacturing sales topped expectations in November as they climbed 1.5 per cent in the month to $51.8 billion.
Economists had expected a gain of 1.0 per cent for the month, according to Thomson Reuters.
Statistics Canada said Thursday the rise followed a drop in October that was revised to a drop of 0.6 per cent from 0.8 per cent contraction.
“Although growth in the manufacturing sector has been modest, the October decline looked oversized, particularly given some signs of improvement in the U.S. industrial sector and a still-weak Canadian dollar,” Royal Bank senior economist Nathan Janzen wrote in a report.
“The rebound in November is consistent with our view that, looking through monthly volatility, the underlying trend in the sector remains modestly positive reflecting a continued easing in the drag from the oil and gas sector and a modest pickup in U.S. demand.”
In constant dollars, sales climbed 1.2 per cent, indicating a higher volume of manufactured goods was sold.
Sales were up in 14 of the 21 industries, boosted by the primary metal, petroleum and coal and chemical sectors.
The primary metal sector rose 9.1 per cent to $4.0 billion, while petroleum and coal product sales increased 3.7 per cent to $4.5 billion. The chemical manufacturing industry rose 3.4 per cent to $4.4 billion.
However, the transportation equipment sector fell 2.3 per cent to $10.3 billion due to a drop in the aerospace product and parts industry, which dropped 7.4 per cent and the “other transportation equipment industry,” which fell 26.8 per cent after a significant increase in October.
Statistics Canada says sales were up in every province except New Brunswick, which dropped 2.4 per cent to $1.3 billion.
Quebec rose 3.0 per cent to $12.1 billion, while Alberta rose 3.9 per cent to $5.4 billion in November.