Canadian manufacturing sales declined 3.6 percent to $71.5 billion in February, following a 4.5 percent increase in January. The decreases were observed in 12 of 21 industries, led by the petroleum and coal product (-14.9 percent), motor vehicle (-12.3 percent) and primary metal (-4.2 percent) industries. Conversely, the machinery (+3.0 percent) and electrical equipment, appliance and component (+6.0 percent) industries posted the largest increases. Year over year, total sales were up 3.8 percent in February.
The monthly decline resulted from lower volumes and prices as sales in real terms decreased 2.4 percent in February and the Industrial Product Price Index edged down 0.8 percent.
Total inventory levels rose 0.9 percent to $122.3 billion in February, marking a new record high, with increases in finished products (+1.7 percent) and goods in process (+1.7 percent) and little change in raw materials (-0.1 percent). The petroleum and coal product (+8.8 percent), aerospace product and parts (+5.4 percent) and chemical (+2.3 percent) industries posted the largest gains, while the fabricated metal (-2.8 percent), wood product (-3.0 percent) and primary metal (-0.9 percent) industries posted the largest declines.
The monthly growth of total inventories resulted from higher volumes as total inventory level in real terms grew 1.8 percent in February, while the Raw Materials Price Index declined 0.4 percent.
The inventory-to-sales ratio increased from 1.63 in January to 1.71 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.
The total value of unfilled orders rose 0.6 percent to $109.1 billion in February, mainly on higher unfilled orders in the aerospace product and parts, other transportation equipment and railroad rolling stock industries, while the ship and boat building and plastics and rubber products manufacturing industries posted the largest declines. The total value of unfilled orders was up 9.9 percent on a year-over-year basis in February.
The total value of new orders decreased 2.7 percent to $72.2 billion in February, with substantial declines in the new orders of petroleum and coal products (-15.5 percent) and motor vehicles (-15.0 percent) industries. Meanwhile, the aerospace products and part industry recorded the largest increase.
The capacity utilization rate (not seasonally adjusted) for the manufacturing sector decreased from 78.9 percent in January to 77.0 percent in February, with lower capacity utilization rates in 14 of 21 industries. Notable decreases were in the petroleum and coal product (-5.9 percentage points), transportation equipment (-2.5 percentage points) and primary metal (-3.9 percentage points) industries. The decreases were partially offset by a higher capacity utilization rate in the machinery industry (+1.7 percentage points).