June manufacturing sales decline by 1.7 percent: Statistics Canada report

Statistics Canada’s latest report shows that manufacturing sales in Canada decreased by 1.7 percent to $71.5 billion in June.

There were widespread declines over 14 of 21 subsectors, led by the petroleum and coal products (-8.3 percent), chemical (-6.5 percent), and machinery (-5.5 percent) subsectors.

Sales of motor vehicles increased the most, rising 11.4 percent to $5.6 billion in June. On a quarterly basis, total sales fell 0.8 percent in the second quarter of 2023, mainly on lower sales in the petroleum and coal product (-8.1 percent) and primary metal (-8.9 percent) subsectors. Year over year, total sales decreased 1.4 percent in June.

Total sales in constant dollars declined one percent in June, indicating a lower volume of goods sold, as per the report.

The report states that many auto manufacturing plants increased their production in June and operated at a higher production capacity, leading to an 11.4 percent increase in sales of motor vehicles to $5.6 billion, the highest level since June 2019. On a quarterly basis, motor vehicle sales were up 8.1 percent in the second quarter of 2023, the third consecutive quarterly gain. Sales of motor vehicle parts, however, declined 6.8 percent in June. The exports of motor vehicles and parts increased by 4.7 percent in the month.

The report adds that manufacturing sales fell in five provinces in June, led by Alberta and Ontario. Sales in Quebec increased the most.

In Alberta, sales decreased eight percent to $8.5 billion in June, the lowest level since January 2022.

Sales in Ontario fell 1.1 percent to $32.6 billion in June, mainly driven by the motor vehicle parts industry group (-7.1 percent), as well as the petroleum and coal product (-10 percent) and machinery (-7.2 percent) subsectors. The declines were partially offset by a 10.9 percent increase in sales of motor vehicles.

In Quebec, sales rose one percent to $17.7 billion in June, on higher sales of primary metals as well as chemical products. The report notes that despite the gain in total manufacturing sales in Quebec in June, sales in Montréal fell 2.1 percent on lower production of aerospace products and parts (-6.6 percent), while Québec posted an 8.1 percent decline due to lower sales of petroleum and coal products.

Total inventory levels edged up 0.3 percent to $123.2 billion in June, on higher inventories in nine of 21 subsectors, driven by higher inventories of aerospace products and parts (+3.3 percent) and chemicals (+2.5 percent).

The total value of unfilled orders edged up 0.2 percent to $104.5 billion in June, primarily on higher unfilled orders of motor vehicles as well as electrical equipment, appliances and components, the report adds.