Sales gained 1.5 percent during that month
January 23, 2017
The Canadian Press
OTTAWA—Canadian manufacturing sales topped expectations in November as they climbed 1.5 percent in the month to $51.8 billion.
Economists had expected a gain of 1.0 percent for the month, according to Thomson Reuters.
Statistics Canada said the rise followed a drop in October that was revised to a drop of 0.6 percent from 0.8 percent contraction.
“Although growth in the manufacturing sector has been modest, the October decline looked oversized, particularly given some signs of improvement in the U.S. industrial sector and a still-weak Canadian dollar,” Royal Bank senior economist Nathan Janzen wrote in a report.
“The rebound in November is consistent with our view that, looking through monthly volatility, the underlying trend in the sector remains modestly positive reflecting a continued easing in the drag from the oil and gas sector and a modest pickup in U.S. demand.”
In constant dollars, sales climbed 1.2 percent, indicating a higher volume of manufactured goods was sold.
Sales were up in 14 of the 21 industries, boosted by the primary metal, petroleum and coal and chemical sectors.
The primary metal sector rose 9.1 percent to $4.0 billion, while petroleum and coal product sales increased 3.7 percent to $4.5 billion. The chemical manufacturing industry rose 3.4 percent to $4.4 billion.
However, the transportation equipment sector fell 2.3 percent to $10.3 billion due to a drop in the aerospace product and parts industry, which dropped 7.4 percent and the “other transportation equipment industry,” which fell 26.8 percent after a significant increase in October.
Statistics Canada says sales were up in every province except New Brunswick, which dropped 2.4 percent to $1.3 billion.
Quebec rose 3.0 percent to $12.1 billion, while Alberta rose 3.9 percent to $5.4 billion in November.News from © Canadian Press Enterprises Inc. 2016