According to Statistics Canada, manufacturing sales rose 1.5 percent to $53.8 billion in September, following a 1.4 percent decrease in August. Sales increased in 13 of 21 manufacturing industries led by the wood, chemical and food industries. Nevertheless, sales in September were 3.6 percent below their pre-pandemic levels in February.
Total manufacturing inventories increased 0.7 percent to $87.0 billion in September, the second consecutive monthly gain. Inventories were up in 14 of 21 industries, led by the transportation equipment and wood product industries. Nevertheless, total inventory levels in September were 0.7 percent below their pre-pandemic level in February. Total inventories rose 0.4 percent in the third quarter, following a 1.9 percent decline in the second quarter.
The inventory-to-sales ratio edged down from 1.63 in August to 1.62 in September. This ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.
Following five consecutive monthly declines, unfilled orders rose 0.3 percent in September on higher unfilled orders for the transportation equipment (+0.4 percent) and primary metals (+7.5 percent) industries. Unfilled orders increased in 12 of 21 industries in September. With this increase, total unfilled orders in September stood 7.1 percent below February.
Following a 0.8 percent decline in August, new orders rose 3.6 percent to $54.1 billion in September on higher new orders of transportation equipment, wood products and food industries. These gains were partially offset by a 39.7 percent decline in new orders in the computer and electronic product industry.
The capacity utilization rate (not seasonally adjusted) for the total manufacturing sector increased from 75.5 percent in August to 78.5 percent in September, driven by higher production in 18 of 21 industries.
Capacity utilization rates were up in the transportation equipment (+6.6 percentage points), chemical (+4.1 percentage points), wood (+2.2 percentage points) and food (+1.7 percentage points) industries. Employment in the manufacturing sector also rose 68,000 in September.