Statistics Canada reported Friday that manufacturing sales declined 3.1 percent in December to $48 billion, the largest decline since May 2009. Just over half of the decrease reflected lower sales in the transportation equipment industry. Sales were also down in the chemical, petroleum and coal product as well as the fabricated metal product industries.
Sales decreased in 16 of 21 industries, representing 82 percent of the manufacturing sector. Durable goods sales were down 4.2 percent while non-durable goods sales declined 2 percent.
Manufacturing sales fell 9.1 percent in the transportation equipment industry to $7.8 billion, the largest percentage decrease since February 2011. A 15.4 percent decline in the motor vehicle assembly industry was the main reason for the decline in transportation equipment sales. Sales in the motor vehicle parts industry were down 2.7 percent to $1.9 billion, the fourth decrease in five months. In the fabricated metal product industry, sales were down 4 percent to $2.8 billion. The drop largely stemmed from lower sales volumes.
Unfilled orders rose 2.6 percent to $65.8 billion. The increase stemmed from a 5 percent gain in the aerospace product and parts industry. Unfilled orders in the aerospace industry stood at $35.9 billion in December. A 3.2 percent decline in the machinery industry offset a small portion of the gain.
For 2012 as a whole, Canadian manufacturing sales reached $590.5 billion, up 3.4 percent from 2011. This was less than half the rate of growth of 7.8 percent in 2011 and 8.9 percent in 2010. The slowdown in growth for the manufacturing sector in 2012 was the result of sales trends in some key industries. In the primary metals industry, annual sales fell 3.4 percent to $46.9 billion in 2012, following a 15.6 percent increase the year before. Sales in the petroleum and coal products industry increased 6.6 percent in 2012, compared with a 17 percent gain in 2011.