According to Statistics Canada, manufacturing sales increased 1.0 percent to $57.1 billion in January, following three consecutive monthly decreases.
Sales rose in 15 of 21 industries, representing 55.9 percent of total manufacturing sales. Higher sales in the food as well as the electrical equipment, appliance and component industries were the main contributors to the gains in January.
Inventory levels rose for the second consecutive month, up 1.2 percent to $85.7 billion in January. Inventories were up in 16 of 21 industries, led by the transportation equipment (+1.8 percent) and machinery (+2.4 percent) industries.
The inventory-to-sales ratio was unchanged at 1.50 in January. 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 declined 1.0 percent to $102.6 billion in January, following a revised 7.3 percent gain in December that reflected new information provided by respondents. The decrease in January was mainly attributable to lower unfilled orders in the aerospace product and parts industry, as well as the other transportation equipment industry.
These declines were partially offset by an increase in unfilled orders in the computer and electronic product and the motor vehicle body and trailer industries.
New orders fell 11.9 percent to $56.0 billion in January, following a 10.9 percent increase in December. The decrease mostly reflected lower new orders in the aerospace product and parts industry. The decline in January was partially offset by higher new orders in the computer and electronic product and motor vehicle body and trailer industries.
The unadjusted capacity utilization rate for the manufacturing sector increased from 75.8 percent in December to 78.4 percent in January.
Overall, the capacity utilization rate rose in 13 of 21 industries, with the petroleum and coal product and transportation equipment industries posting the largest increases in January.
After three consecutive monthly declines, the capacity utilization rate for the petroleum and coal product industry rose from 69.0 percent in December to 82.8 percent in January. This gain reflected a ramp up of production by several refineries.
The capacity utilization rate for the transportation equipment industry increased 5.3 percentage points to 81.1 percent in January. A gradual rise of production at some motor vehicle and motor vehicle parts plants after holiday shutdowns was partly responsible for the increase in January.