Statistics Canada reported Friday that manufacturing sales in the country dropped to $48.3 billion in July, a 1.5 percent decrease from June and the third decrease in the past five months.
Sales of transportation equipment fell 6.4 percent to $8.6 billion in July. The decrease follows four consecutive months of increases. A 22.1 percent drop in aerospace product and parts led the decline, followed by a 3.2 percent decrease in motor vehicle assembly.
Despite the decline in transportation equipment in July, manufacturers in this industry reported strong advances in the first half of 2012. Sales rose 17.8 percent compared with the first half of 2011. Higher sales in the motor vehicle assembly (up 22.4 percent) and motor vehicle parts (up 23.3 percent) industries drove the increase. In the first half of 2012, motor vehicle assembly was at its highest level since 2007, the year before the industry experienced a sharp downturn.
Lower sales of machinery equipment (down 2.4 percent) also played a part in the overall drop. After reporting gains in June, manufacturers in the commercial and service machinery manufacturing industry reported lower sales in July.
Inventories also rose 1 percent in July to $65.5 billion, led by increases in the aerospace product and parts, and machinery industries.