CA: Manufacturing Sales

Fri Jan 19 07:30:00 CST 2018

Consensus Actual Previous
Month over Month 2.0% 3.4% -0.4%
Year over Year 6.0% 4.3%

November manufacturing sales soared 3.4 percent on the month after October's 0.4 percent decline. From a year ago, sales were up 6.0 percent. Expectations were for a monthly increase of 2.0 percent. Twelve of 21 industries covered by this report representing 81 percent of the manufacturing sector advanced. Higher prices were the main factor in increased sales of petroleum & coal products which were up 6.1 percent. However sales volumes decreased 0.3 percent in November. Apart from petroleum & coal, other chief industries contributing to the manufacturing sales increase were transportation equipment (9.1 percent) and chemical industries (5.9 percent). Other increases included food, fabricated metal products and paper.

Unfilled orders declined 0.9 percent on lower unfilled orders for aerospace products and parts and for fabricated metals. These declines were partially offset by increases in unfilled orders in the electrical equipment, appliances and components industry, and in the paper industry.

New orders fell 1.8 percent following a 5.2 percent gain in October. There were lower new orders for aerospace products and parts but there were higher new orders in the motor vehicle industry and for petroleum and coal products.

Manufacturing sales for twenty-one reporting industries are the Canadian dollar level of factory shipments for manufacturing durable and nondurable goods. Volume figures are also provided. The sales statistics form part of a wide monthly report that encompasses information on new orders, backlogs and inventories and is a key input into forecasts of monthly gross domestic product (GDP).

Manufacturer's shipments represent the monetary level of factory shipments for durable and nondurable goods and are a relevant indicator for an export-oriented economy. The data are used by analysts to evaluate the economic health of manufacturing industries. They are also used as inputs to GDP and needless to say, these data are used by the central bank in its decision-making process.

The monthly survey of manufacturing of which shipments is a part, provides a broad look at manufacturing activity levels. The level of activity in manufacturing can be affected by the level of interest rates which slows or stimulates the demand for goods and production. Shipments are an indication of how busy factories have been as manufacturers work to fill orders. The data not only provide insight to demand for items such as refrigerators and cars, but also business investment such as industrial machinery, electrical machinery and computers. Because a large proportion of shipments are headed south of the border to the U.S. and include a wide variety of durables, shipments are affected by U.S. economic activity as well as the exchange rate. Although the focus in this report is on shipments, it also contains information on inventories and new and unfilled orders.

Results from this survey are used by both the private and public sectors including finance departments of the federal and provincial governments, the Bank of Canada, Industry Canada, the System of National Accounts, the manufacturing community, consultants and research organizations in Canada, the United States and abroad.