Canadian manufacturing sales jump 5.5% in July

Canadian manufacturing sales increased 5.5 percent to $41.4 billion in July, building on the 2.2-percent increase in June, according to Statistics Canada. The motor vehicle, motor vehicle parts and the primary metals industries were the major contributors to the rise in sales in July.
 
Manufacturing sales in July remained 22.4-percent below the $53.3 billion posted a year earlier. Excluding the motor vehicle assembly and motor vehicle parts industries, manufacturing sales increased 2.1 percent. Constant dollar manufacturing sales rose 5.5 percent in July.
 
Sales in 15 of 21 manufacturing industries increased in July, representing 66 percent of total sales.
 
Strong sales in motor vehicles, motor vehicles parts and primary metals
Sales in the motor vehicle industry rose 48.2 percent in July to $3.3 billion, as some assembly lines resumed production following extended shutdowns in recent months. Sales of motor vehicles were lower than levels seen over the past few years. July motor vehicle sales were down 22.6 percent from sales in July 2008.
 
Sales in the motor vehicle parts industry increased 30.0 percent to $1.5 billion in July, reflecting higher demand from assembly plants.
 
Sales in the primary metals industry rose 11.2 percent to $2.7 billion.
 
Aerospace products and parts (+12.2%) and plastics and rubber products (+9.0%) also made important contributions to the overall manufacturing strength in July.
 
Petroleum and coal products (-3.6%) and food (-1.3%) posted the largest sales declines in July. In the petroleum and coal products industry, lower prices (-5.2%) accounted for the drop in manufacturing sales. Lower sales volumes were responsible for the decrease in the food industry.
 
Sales increase in Ontario and Quebec
Sales in Ontario rose 11.9 percent in July, reflecting increased sales of motor vehicles and motor vehicle parts. Excluding motor vehicles and motor vehicle parts, Ontario’s manufacturing sales rose 4.1 percent. Higher sales of primary metals (+34.2%) also contributed to the province’s gains in July.
 
In Quebec, sales increased 4.0 percent in July, building on the 6.0-percent rise in June. The provincial advance was broadly based as higher sales were seen in 17 of 21 industries. The aerospace industry (+6.4%) posted the largest increase in production in dollar terms.
 
Sales fell by 4.0 percent in Alberta in July, largely as a result of a 10.7-percent drop in food sales. A 3.8-percent decline in petroleum and coal product sales contributed to the provincial weakness in sales.
 
In Manitoba, sales fell 4.7 percent in July. Transportation equipment manufacturing (-13.1%), fabricated metal products (-16.9%) and primary metals (-8.1%) contributed to the decline.
 
Saskatchewan (-1.9%), Newfoundland and Labrador (-1.2%), Nova Scotia (-1.2%) and British Columbia (-0.8%) were other provinces with declines in sales.