Manufacturing sales edge up in June: StatsCan

Manufacturing sales increased”1.9 percent to”$39.7″billion in June, partially reversing the”4.9-percent decline posted in May, according to Statistics Canada’s June 2009 Monthly Survey of Manufacturing. (Read previous Statistics Canada’s reports.) Strong sales in the aerospace industry and a rise in the price of petroleum and coal products largely explain the increase. Excluding both industries, Canada’s manufacturing sales would have decreased”0.5 percent.

Constant dollar manufacturing sales rose”1.1% in June, indicating that greater sales volumes were responsible for more than half of the increase in sales.

Sales were up in”12″of”21″manufacturing industries in June, representing”68 percent of total sales.

Production in the aerospace industry increased”61.0 percent to”$1.6″billion, partially reversing a”44.5-percent decline in May. The aerospace industry has been extremely volatile over the past several months. Excluding the aerospace industry, total Canadian manufacturing sales increased”0.4 percent.

Sales in the petroleum and coal products industry rose”6.9 percent, reflecting higher prices for petroleum products. In addition, several refineries increased production in June.

Non-metallic mineral products (+5.6 percent), furniture and related products (+4.9 percent), wood products (+3.5 percent) and food (+1.4 percent) were other industries reporting sales increases in June.

The motor vehicle manufacturing industry was the main offsetting industry in June. Sales decreased”6.0 percent, following a”20.8-percent drop in May. The recent weakness reflected several plant shutdowns. In contrast, motor vehicle parts manufacturing edged down”0.1 percent in June.

Provincial manufacturing sales results are mixed
Among the Atlantic provinces, sales rose significantly in Newfoundland and Labrador (+58.0 percent) and New Brunswick (+7.2 percent), while Prince Edward Island (–13.2 percent) and Nova Scotia (–2.8 percent) saw sales decline.

In Quebec, sales increased”5.7 percent in June, partially reversing an”8.6-percent drop in May. The provincial advance was largely driven by aerospace production, which increased by”82.5 percent to”$1.1″billion. Non-metallic mineral products (+8.5 percent), fabricated metal products (+4.4 percent), food (+2.1 percent) and petroleum and coal products (+2.0 percent) were other industries contributing to the sales increase in Quebec.

Sales in Ontario edged down”0.3% in June, largely the result of a”7.3-percent decline in motor vehicle manufacturing in the province. The primary metals industry (–5.9 percent) also contributed to the weakness in Ontario. A”2.6-percent gain in the food industry only partially offset the declines in motor vehicle manufacturing and the primary metals industry.