Wednesday, September 17th9.4°C
23373
20950

Manufacturing sales off 0.1%, but pick-up in volumes to add to GDP growth

OTTAWA - Canada's key factory sector saw sales decline slightly in April, but a 0.4 per cent increase in volume output took the sting out of the unexpectedly soft performance Friday.

Especially encouraging was a 3.3 per cent increase in the auto industry, which will provide a boost to Ontario's underperforming economy.

As well, the pipeline continued to hold promise for future sales as new orders rose 2.5 per cent and unfilled orders rising 0.5 per cent continuing the strong trend in recent months.

"From the (volume) point of view, the report is fairly respectable," said Jimmy Jean, an analyst with Desjardins Capital Markets, noting that decline was all due to a price drop.

"Assuming the pace of March and April was kept in May and June, we'd find real manufacturing sales up a whopping 5.1 per cent, flatly the strongest quarter in nearly three years."

TD Bank economist Randall Bartlett pointed out that manufacturing sales are up 5.7 per cent over the past 12 months, the strongest year-over-year growth since June 2012.

While the headline manufacturing number from Statistics Canada includes price fluctuations, analysts point out that it is the volume of sales that goes into the gross domestic product calculation, hence the April result will contribute positively to second-quarter economic growth.

In all, 14 of 21 industries representing about 60 per cent of manufacturing posted gains as net sales slipped slightly to $50.9 billion after three consecutive increases.

The main weakness came in the petroleum and coal product industries, which fell by five per cent, as well as aerospace, which gave back 6.2 per cent of the strong gains the sector made in the previous few months. Machinery industries also dipped by 3.2 per cent.

Aside from auto, the paper industry posted an impressive 12.1 per cent gain in April, and food manufacturing continued its four-month run edging up 0.5 per cent.

Regionally, provinces were split between gainers and losers, with most of the losses coming in Quebec and the Atlantic provinces.

The Canadian Press


Read more Business News

21097


Recent Trending




Today's Market
S&P TSX15510.54+27.98
S&P CDNX975.70-5.80
DJIA17131.71-0.26
Nasdaq4554.613+1.854
S&P 5002000.54+1.56
CDN Dollar0.9121+0.0006
Gold1237.30+0.6001
Oil94.52-0.36
Lumber349.00+1.00
Natural Gas4.076+0.013

 
Okanagan Companies
Pacific Safety0.175-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.30+0.01
Cantex0.06-0.01
Anavex Life Sciences0.250.00
Metalex Ventures0.06-0.005
Russel Metals35.95-0.22
Copper Mountain Mining2.69-0.01
Colorado Resources0.16+0.005
ReliaBrand Inc0.027+0.003
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.30+0.035

 



23104

FEATURED Property
18528382122 Highway 95 Parson BC
1 bedrooms 1 baths
$35,000
more details
image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 1 of 2 Photo: Thinkstock.com1. Move in with your parents or in-laws Explain that you're thinking strategically in moving back home. The quickest way to get into the housing market is to ma...


Price Guarantees

Article written by Linda Bustos Though I’d never recommend “lowest prices” as a unique selling proposition, I notice many retailers use a Price Match Guarantee or even a 110% Guara...


Brangelina and Celebrity vs Philanthropy

This week my wife wrote a blog for our charities website, I thought you may enjoy reading it here: I was planning to write about the incredible philanthropic Miss Angelina when, funnily enough, she ...

_





23109


Member of BC Press Council


23262