Manufacturing sales rose in October to $72.6 billion, as per latest Statistics Canada report

Statistics Canada’s monthly manufacturing survey report reveals that manufacturing sales rose 2.8 percent to $72.6 billion in October.

The agency reported that sales increased in 12 of 21 industries, led by the petroleum and coal (up 12.7 percent), food (up 2.9 percent), chemical (up 4.9 percent) and miscellaneous manufacturing ( up 13.3 percent) industries.

However, motor vehicles and machinery sales saw the largest monthly declines, down 3.2 percent and 1.7 percent respectively.

The agency noted that compared with the same month last year, total manufacturing sales were up 16.5 percent.

Statistics Canada noted that the entire increase in current dollar sales was driven by higher prices as the Industrial Product Price Index rose 2.4 percent in October.

After four consecutive monthly declines, sales in the petroleum and coal industry rose 12.7 percent to $10.6 billion in October, on higher prices and some volume growth (up 2.1 percent). Sales in the food manufacturing industry reached a record high in October, rising 2.9 percent to $12.3 billion. Sales of chemical products rose for the second consecutive month, up 4.9 percent to $6.1 billion. Other industries that increased in October were the miscellaneous manufacturing (up 13.3 percent), paper product (up 2.4 percent) and motor vehicle parts (up 2.2 percent) industries.

Sales of motor vehicles posted the largest decline in October, falling 3.2 percent to $3.4 billion. Lack of materials and microchip shortages continue to plague several auto manufacturers, according to the agency. Exports of motor vehicles and parts were down 1.8 percent in October.

Manufacturing sales were up in seven provinces, led by Alberta, Quebec and Ontario. The increases were partly offset by lower sales in British Columbia. In Alberta, sales rose 7.3 percent to a record high of $9.5 billion in October, after four consecutive monthly declines. In Quebec, sales rose 3.3 percent to $18.2 billion. After a one percent decline in September, sales in Ontario increased 1.7 percent to $31.1 billion. In British Columbia, sales were down 1.2 percent to $5.7 billion.

Total inventory levels increased at their lowest monthly pace, in dollar terms. Statistics Canada shares that since March 2021, it was up 0.3 percent to $122.2 billion in October. The volume of inventory levels dipped 0.8 percent in the same month.

The gains were led by the primary metal (up 2.8 percent), plastics and rubber (up 2.6 percent) and wood product (up 1.8 percent) industries and were partly offset by lower inventories in the aerospace product and parts (down 2.9 percent), fabricated metal (down 1.9 percent) and food (down 1.1 percent) industries. Raw materials (up 0.7 percent) as the largest component of the inventory contributed the most to the monthly gains, while finished products (up 0.1 percent) and goods in process (up 0.1 percent) changed little.

Total value of the unfilled orders remained unchanged in October at $110.9 billion, as higher unfilled orders in the aerospace product and parts (up 0.6 percent) and fabricated metal (up 2.8 percent) industries were largely offset by lower unfilled orders in the computer and electronic product (down 3.9 percent) and primary metal (down 5.5 percent) industries.

The capacity utilization rate (not seasonally adjusted) for the manufacturing sector was down from 77.6 percent in September to 77.2 percent in October.