According to Statistics Canada, manufacturing sales increased 1.0 percent to $50.8 billion in November, led by higher motor vehicle sales in Ontario. These gains were partially offset by declines in sales of other transportation equipment, primary metals and petroleum and coal products.
Motor vehicle sales rose 3.8 percent in November, the sixth increase in seven months. Sales in November were 18.0 percent higher than they were in November 2014. Largely as a result of these gains, the motor vehicle industry's share of total manufacturing rose from 9.2 percent to 10.9 percent.
The increase in motor vehicle sales, both in November and in the 12 months to November, was largely the result of increases in the value of the vehicles assembled in Canada. In November, some companies reported changes in their production to higher-end and/or redesigned models. Moreover, since the beginning of 2015 all five of the largest motor vehicle assembly companies in Canada have shifted their production to either higher value models and trims, or upgraded versions of the vehicles they produce. In addition, factory gate prices of motor vehicles rose in 2015, reflecting the lower value of the Canadian dollar. According to the Industrial Product Price Index, the price of motor vehicles rose 12.8 percent in the 12 months ending in November.
Motor vehicle parts manufacturers benefited from the increased activity in the motor vehicle assembly industry. Sales of motor vehicle parts rose 2.6 percent in November, the fourth gain in five months.
Sales in Ontario grew 1.5 percent, the second consecutive gain, as motor vehicle manufacturers increased the value of their output by shifting production to higher-end and/or redesigned models. Motor vehicle parts sales rose 2.7 percent. Gains in Ontario were more widespread than the rest of the country, with higher sales reported in 18 of 21 industries, representing more than 90 percent of the sector in the province. Notably, sales of both primary metals and petroleum and coal products rose in Ontario, despite the fact that those industries posted two of the larger national declines in November.