Statistics Canada says manufacturing sales fell 1.5 per cent in July
Manufacturing sales fell 1.5 percent in July to $59.6 billion following a 3.6 percent increase in June, Statistics Canada said Tuesday. The agency reported the drop in sales came as sales fell in 12 of 21 industries in July, while sales in constant dollars fell 1.7 percent, indicating a lower volume of goods sold.
TD Bank economist Omar Abdelrahman said the figures add to the list of recent indicators pointing to a soft patch in Canada’s economy early on in the summer.
“It’s one step forward, two steps backwards for Canada’s manufacturing sales,” Abdelrahman wrote in a report. “Just as auto sales are starting to show signs of life, other industries are taking a bite out of growth.”
The drop in sales in July came as sales of wood products fell 21.8 percent for the month, adding to a 5.8 percent drop in June. Sales of aerospace products and parts also lost 19 percent, while the miscellaneous category dropped 12.1 percent. Meanwhile, motor vehicle sales rose 13.5 percent, while primary metal sales gained 3.9 percent and motor vehicle parts climbed 7.6 percent higher.
Statistics Canada reported last month that the economy contracted at an annualized rate of 1.1 percent in the second quarter and said its preliminary estimate pointed to a pull back of 0.4 percent in July.
Canadian wholesale trade figures for July are expected on Thursday, while retail trade numbers are to come on Sept. 23 followed by gross domestic product numbers for July on Oct. 1.
The Bank of Canada kept its key interest rate target on hold last week at 0.25 percent, what it calls the effective lower bound. The central bank said it continues to expect the economy to strengthen in the second half of the year through the fourth wave of the pandemic, and that supply issues may cause problems for the recovery.