According to Statistics Canada, manufacturing sales rose 0.5 percent to $53.7 billion in September, reflecting higher sales in the petroleum and coal product industry.
Overall, sales were up in 7 of 21 industries, representing 28.9 percent of the Canadian manufacturing sector. Sales of non-durable goods rose 1.7 percent to $25.4 billion, while sales of durable goods decreased 0.5 percent to $28.4 billion.
In constant dollars, sales increased 0.7 percent, indicating that higher volumes of manufactured goods were sold in September.
Sales in current dollars also increased in the machinery (+1.9 percent) and paper (+1.0 percent) industries. Sales in constant dollars for these industries increased 2.1 percent and 1.4 percent, respectively, indicating that higher volumes of goods sold were responsible for the gains.
Partially offsetting these increases in current dollars were declines in the food and transportation equipment industries. Overall sales in the transportation equipment industry declined 0.7 percent to $10.3 billion, although increases in the railroad rolling stock industry (+66.8 percent), other transportation equipment (+36.5 percent) and aerospace product and parts (+5.6 percent) were posted in September. These gains were not sufficient to offset decreases in the motor vehicle (-5.9 percent) and motor vehicle parts (-2.5 percent) industries. After removing price effects, volumes sold declined by 4.5 percent and 1.2 percent respectively in these industries, following strong volumes in August.
Manufacturing inventory levels fell for the fourth consecutive month, down 0.7 percent to $73.3 billion in September. Inventories were down in 10 of 21 industries, led by the transportation equipment (-2.8 percent), primary metal (-2.0 percent) and machinery (-1.7 percent) industries. These decreases were partially offset by a 4.1 percent rise in the petroleum and coal product industry.
The inventory-to-sales ratio fell from 1.38 in August to 1.36 in September. The inventory-to-sales 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 1.1 percent to $85.1 billion in September. Most of the decrease was attributable to a drop in 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 motor vehicle and machinery industries.
New orders decreased 1.7 percent to $52.8 billion, following a 5.2 percent gain in August. The decline was mainly attributable to fewer new orders in the aerospace product and parts industry and in the motor vehicle industry. The decrease was partially offset by higher new orders in the petroleum and coal product industry.