Manufacturing sales up again in December, nearing pre-recession levels

Statistics Canada says manufacturing sales rose 0.6 percent to $49.9 billion in December, the fifth increase in six months.

The agency says manufacturing now has rebounded close to the $50.2 billion recorded in October 2008, when the economic downturn began.

Monthly sales for seven of 21 manufacturing industries have reached or surpassed levels recorded in 2008.

Sales in December increased in 12 of 21 industries representing about two-thirds of manufacturing, with gains coming primarily in durable goods industries, where sales rose 2.1 percent.

Sales of non-durable goods fell 0.9 percent.

For 2011 as a whole, manufacturing sales amounted to $571 billion, up 7.8 percent from 2010, with higher sales in the petroleum and coal products, primary metal, machinery and transportation equipment industries.

Sales by motor vehicle manufacturers rose 2.9 percent in December to $4.3 billion, the highest monthly total since November 2007.

Sales in the motor vehicle parts industry rose 5.5 percent to $1.9 billion.

The transportation equipment industry as a whole had the largest dollar gains of any industry, with a 3.7 percent increase in sales to $8.5 billion. This was the seventh consecutive monthly increase.

Plastics and rubber products sales increased 7.5 percent to $2.1 billion, their highest level since August 2007. The rise reflected higher sales volumes.

Greater sales volumes were responsible for a 2.7 percent increase in the primary metal industry to $4.2 billion, the third consecutive monthly gain.

The overall December sales increase was partly offset by a 5.6 percent decline among petroleum and coal product manufacturers to $6.9 billion.

Manufacturing sales rose in four provinces in December, with most of the increase located in Central Canada. Combined sales in Ontario and Quebec were up $741 million, while sales declined $445 million in the rest of Canada.

With the gains in December, Ontario, Alberta, Newfoundland and Labrador, and Saskatchewan surpassed their sales levels recorded in October 2008.

www.statscan.gc.ca