According to Statistics Canada, manufacturing sales fell 2.0 percent to $70.4 billion in August, the fourth consecutive monthly decline. There were lower sales in 17 of 21 industries, led by the petroleum and coal product (-3.9 percent), chemical (-4.5 percent), primary metal (-3.2 percent), paper (-5.7 percent) and wood product (-4.3 percent) industries. Meanwhile, sales of beverage and tobacco products (+5.5 percent) and food (+0.6 percent) increased the most.
Total inventory levels increased 1.3 percent to $119.9 billion in August, on higher inventories in 16 of 21 industries, led by the aerospace product and parts (+5.0 percent), computer and electronic product (+7.0 percent) and beverage and tobacco (+6.8 percent) industries. The gains were partly offset by a 2.5 percent decline in inventories of petroleum and coal and a 3.5 percent decrease in paper products. Total inventories (+37.5 percent) and raw materials (+51.5 percent) rose compared with the level in February 2020, prior to the COVID-19 pandemic—mainly on higher prices of materials as the increases were 9.6 percent for total inventories and 13.7 percent for raw materials in real terms during the same period.
The inventory-to-sales ratio increased from 1.65 in July to 1.70 in August. This ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.
After a 0.2 percent decline in July, the total value of unfilled orders rose 1.5 percent to $107.5 billion in August on higher unfilled orders in the transportation equipment industry (+2.8 percent). The increase was partially offset by declines of unfilled orders in the fabricated metal industry (-3.7 percent). Total unfilled orders were up 20.8 percent on a year-over-year basis in August.
The total value of new orders increased 0.6 percent to $72.0 billion in August, largely on higher new orders in the transportation equipment industry (+9.8 percent). The gain was partially offset by lower new orders in the petroleum and coal industry (-3.9 percent).
The capacity utilization rate (not seasonally adjusted) for the manufacturing sector edged up (+0.4 percentage points), from 76.6 percent in July to 77.0 percent in August.