Statistics Canada reported Tuesday that sales in the manufacturing sector slipped 0.2 percent in January to $48 billion, the fourth decline in five months. Sales in January were down in the transportation equipment industry as well as the petroleum and coal product industry.
Durable goods sales declined 0.7 percent to $24.1 billion, while non-durable goods sales rose 0.3 percent to $23.9 billion. Unfilled orders increased 5.8 percent to $69 billion in January, the highest level since November 2008 ($69.3 billion).
Sales declined 3.8 percent to $7.5 billion in the transportation equipment industry. The decrease mostly reflected a 19.7 percent drop in production in the aerospace product and parts industry. The aerospace industry is one of the more volatile industries in the manufacturing sector. A 3.7 percent decline in the motor vehicle assembly industry also contributed to the decrease in transportation equipment sales. Petroleum and coal product sales decreased 1.8 percent to $7 billion in January. The decline mostly reflected lower sales volumes.
In January, new orders increased 5.1 percent to $51.8 billion. Most of the gain was attributable to increases in the aerospace product and parts and machinery industries.
Inventory levels were up 1.7 percent to $65.4 billion in January. The gains were led by the aerospace product and parts, and primary metal industries. Primary metal inventories were up 2.4 percent to $7.7 billion, as a result of higher volumes held by manufacturers rather than price changes.