According to Statistics Canada, following the largest increase observed in seven months in January (+3.4 percent), manufacturing sales fell 1.6 percent to $55.4 billion in February on lower sales of transportation equipment. The declines were partially offset by higher sales in the petroleum and coal product, chemical, and wood product industries.
Total inventories rose 0.8 percent to $88.7 billion in February, their highest level since May 2019, on higher inventories of beverages and tobacco products (+14.4 percent), primary metals (+3.2 percent), and petroleum and coal products (+4.8 percent). Inventories fell in the aerospace product and parts (-6.1 percent), furniture and related product (-9.9 percent), and plastics and rubber products (-1.8 percent) industries.
The inventory-to-sales ratio increased from 1.56 in January to 1.60 in February. This ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.
Following two consecutive monthly gains, unfilled orders decreased 1.1 percent to $86.6 billion in February, on lower unfilled orders of transportation equipment (-1.9 percent) and chemicals (-6.8 percent). Unfilled orders were up in the primary metal (+9.6 percent), miscellaneous manufacturing (+8.4 percent) and wood product (+11.3 percent) industries.
The total value of new orders fell 6.6 percent to $54.4 billion in February, driven by lower unfilled orders of transportation equipment (-33.0 percent). The declines were partially offset by higher new orders in the wood product, petroleum and coal product, and primary metal industries.
The capacity utilization rate (not seasonally adjusted) for the total manufacturing sector fell from 76.5 percent in January to 75.7 percent in February, attributable to lower production.
Capacity utilization rates decreased in the transportation equipment (-1.3 percentage points), plastics and rubber products (-1.8 percentage points), and non-metallic mineral product (-4.0 percentage points) industries. The capacity utilization rate rose in the wood product (+1.4 percentage points) and primary metal (+0.6 percentage points) industries.