According to Statistics Canada, manufacturing sales fell 1.8 percent to $53.9 billion in June, following three consecutive monthly gains. The declines were mainly due to lower sales in the petroleum and coal product, transportation equipment, and chemical industries.
Sales were down in 15 of 21 industries, representing 72.1 percent of the manufacturing sector in Canada. Sales of non-durable goods declined 2.2 percent, while sales of durable goods were down 1.5 percent.
Sales in the transportation equipment industry declined 2.3 percent to $11.3 billion in June, following a 4.0 percent increase in May. Compared with June of last year, sales in the transportation equipment industry were up 5.1 percent. The declines in June 2017 were the result of decreases in the motor vehicle (-1.8 percent) and aerospace product and parts (-4.1 percent) industries.
Manufacturing inventories edged down 0.2 percent in June, for the second consecutive month. Inventories declined in 6 of 21 industries, with the petroleum and coal product industry posting the largest decline (-7.4 percent). The decreases were partially offset by higher inventories in 15 industries, led by a 1.2 percent gain in the primary metal industry.
The inventory-to-sales ratio increased from 1.34 in May to 1.36 in June. This ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.
Unfilled orders fell 2.1 percent to $87.3 billion in June. Transportation equipment, along with computer and electronic product manufacturing, were the main industries behind the decrease. An increase in unfilled orders in the chemical industry partially offset the declines.
New orders were down 3.0 percent to $52.1 billion in June, following a 3.3 percent decline in May. Seventeen of 21 industries posted lower levels. The decreases in new orders were more pronounced in the fabricated metal product, petroleum and coal product, and transportation equipment industries.