Manufacturing sales dipped in November: Statistics Canada

Manufacturing sales declined 0.8 percent in November to $44.9 billion, led by decreases in the motor vehicle and motor vehicle parts industries, according to Statistics Canada’s Monthly Survey of Manufacturing for November 2010. Excluding the motor vehicle industries, manufacturing sales edged up 0.2 percent in November compared with October.

Higher sales were reported in 12 of 21 industries, representing 55.2 percent of total manufacturing.

Sales in the transportation equipment industry fell seven percent in November, led by declines in motor vehicle (down 9.2 percent) and motor vehicle parts (down 6.5 percent) manufacturing. Extended plant shutdowns due to retooling, as well as shift reductions, were key contributors to the lower sales in November.

Primary metal sales also declined, down 1.9 percent in November. Despite this decrease, primary metal sales have been strengthening throughout most of 2010. In November, sales were 22.9 percent higher compared with the same month a year earlier.

Outside of the transportation and primary metal industries, many manufacturers reported gains compared with October. Computer and electronic product sales led the gains, rising 5.1 percent in November. Food manufacturing (up 0.7 percent), as well as beverage and tobacco product sales (up 2.9 percent), rose for the first time in four months.

Petroleum and coal product sales advanced one percent in November, the fifth consecutive increase. Rising prices rather than increasing volumes have been behind much of the recent gains.

In November, seven provinces reported sales gains; however, these advances were more than offset by declines in New Brunswick, Alberta and Ontario. Excluding Ontario, manufacturing sales rose 0.6 percent in November compared with October.

Sales in Ontario decreased 2.3 percent in November. The transportation equipment industry was behind most of the drop, with sales falling 7.5 percent or by $420 million. Primary metal sales also fell in Ontario, losing 7.7 percent or $115 million.

New Brunswick (down 4.9 percent) and Alberta (down 1.6 percent) also reported lower sales. Non-durable goods industries such as food, and petroleum and coal products were behind much of the decline in both provinces.

Manitoba led the provincial sales advances in November, increasing 7.6 percent following a 6.1 percent drop in October. Sales in the transportation equipment and primary metal industries were key contributors to the increase.

Sales in Quebec edged up 0.2 percent in November, despite a 13.4 percent drop in the transportation equipment industry. Gains by computers and electronics (up 18.5 percent), non-metallic minerals (up 7.8 percent), and petroleum and coal (up 7.2 percent) manufacturers helped to offset the drop in transportation equipment sales.

New orders advanced 1.6 percent in November compared with October, the third increase in four months. New orders rose largely on the strength of the aerospace products and parts industry. Excluding aerospace products and parts, new orders fell 1.4 percent in November.

For more information, visit www.statcan.gc.ca.