According to Statistics Canada, manufacturing sales declined 0.4 percent to $53.5 billion in October, following two consecutive monthly increases.
Sales fell in 8 of 21 industries, representing 56.0 percent of the manufacturing sector. Sales of motor vehicles and other transportation equipment accounted for most of the decline in October. Excluding these two industries, manufacturing sales increased 0.5 percent.
Transportation equipment sales declined 5.0 percent to $9.7 billion in October, mostly due to lower sales of motor vehicle and other transportation equipment. Sales in the motor vehicle industry fell 6.7 percent to $4.6 billion, the second consecutive monthly decrease. The decline partly reflected lower volumes generated by decreased production after shutdowns of some assembly plants in October.
Inventory levels increased 1.6 percent to $74.8 billion in October, following two consecutive monthly declines. Inventories rose in 16 of 21 industries, with the largest gains in the transportation equipment (+2.8 percent), primary metals (+2.9 percent) and machinery (+2.1 percent) industries.
The inventory-to-sales ratio increased from 1.37 in September to 1.40 in October.
Unfilled orders rose 2.4 percent in October to $87.3 billion, following a 1.1 percent decline in September. The growth in October was mainly attributable to more unfilled orders in the aerospace product and parts industry (+3.1 percent), which was partially due to the depreciation of the Canadian dollar relative to the US dollar during the month.
Unfilled orders also increased in the fabricated metal products, primary metals and machinery industries.
New orders rose 5.3 percent in October to $55.5 billion, as the aerospace product and parts, primary metals and fabricated metal products industries saw an increase in new orders. This advance was partially offset by a decrease in new orders in the motor vehicle industry.