Canadian manufacturing sales jump in January

Manufacturing sales increased 4.5 percent to $47.7 billion in January, the highest level since October 2008, according to Statistics Canada’s Monthly Survey of Manufacturing for January 2011.

Although higher sales were reported in 17 of 21 industries, the gains were mostly concentrated in the motor vehicle and parts industries, as well as aerospace products and parts.

Manufacturing sales of motor vehicles rose 26 percent to $4.1 billion in January. The gain reflects large increases at a number of assembly plants following slowdowns and production difficulties in December caused by severe weather conditions in Southern Ontario. The increase is consistent with the 22.9 percent rise in exports of passenger autos and chassis recorded for January. Related to the rise in motor vehicle assembly, sales in the motor vehicle parts industry rose 23.2 percent.

Production in the aerospace product and parts industry was up 25.2 percent to $1.3 billion. The increase in January was the largest since December 2009.

Sales advanced 6.7 percent in the machinery industry to $2.6 billion. The rise reflects higher sales of agricultural, mining and construction machinery, as well as increased sales by engine, turbine and power transmission equipment manufacturers.

In the food industry, sales were up 2.2 percent to $7.1 billion. Part of the increase reflects a 0.3 percent rise in food prices, as recorded by the Industrial Product Price Index.

Higher sales were reported by four provinces in January, representing 81 percent of total manufacturing.

Sales increased 5.8 percent to $21.9 billion in Ontario. The increase was largely a result of higher sales in the motor vehicle (up 27.1 percent) and motor vehicle parts (up 24.4 percent) industries. Food (up 3.3 percent) also contributed to the provincial gain.

In Quebec, sales advanced 7.4 percent to $11.8 billion. A substantial 48.7 percent increase by manufacturers in the transportation equipment industry was responsible for just over half of the provincial gain. Other industries with sales increases included food (up 8.1 percent), petroleum and coal products (up 4.3 percent) and wood products (up eight percent).

Rounding out the gains in January, sales in British Columbia rose 3.2 percent, while sales in New Brunswick increased 3.8 percent.

On the downside, sales fell 4.2 percent in Manitoba to $1.2 billion as a result of declines in the transportation equipment and chemical product industries. Sales fell three percent in Saskatchewan, mostly reflecting declines in the province’s non-durable goods industries.

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