According to Statistics Canada, Canada's monthly factory sales rose almost twice as fast as expected in July, the first gain in four months, driven by increased production in the petroleum and coal products, primary and fabricated metals, and vehicle industries.
Total manufacturing sales increased 2.7 percent to C$46.74 billion (US$47.17 billion), the fastest pace and highest level since January, following a revised 1.3 percent decline in June.
Shipments in the petroleum and coal products industry rose 6.1 percent to C$6.2 billion (US$6.3 billion) as refineries ramped up production after shutdowns for maintenance and retooling the previous month. Some plants in the primary metal industry, which includes iron, steel and cooper mills, also boosted output following maintenance shutdowns, leading to a 7.6 percent gain in sales to C$4.3 billion (US$4.37 billion), the highest level since October 2008.
Sales in the fabricated metal products industry jumped 8.7 percent to C$2.9 billion (US$2.94 billion), a level that was 93.3 percent of the record reached three years ago.
Shipments in the motor vehicle industry increased 5.5 percent to C$3.4 billion (US$3.45 billion) while sales of vehicle parts were up 5.1 percent to C$1.6 billion (US$1.62 billion), likely reflecting a fading of the supply-chain disruptions from the Japanese earthquake and tsunami.
Total sales excluding motor vehicles, parts and products rebounded 2.3 percent to C$41.64 billion (US$42.3 billion) following a 1.5 percent decline the previous month. Meanwhile, sales in the miscellaneous manufacturing industry surged 24.8 percent.
Manufacturing inventory levels fell 0.1 percent, the first decline since September 2010, to C$63.16 billion (US$64.17 billion), with 13 of the 21 industries reporting declines, led by petroleum and coal products and aerospace product and parts. Inventories of machinery and primary metals rose. The manufacturing inventory to sales ratio dropped to 1.35 from 1.39.