According to Statistics Canada, manufacturing sales increased 1.6 percent to $53.5 billion in August, following two consecutive monthly declines. The gain was mainly attributable to higher sales in the transportation equipment, and petroleum and coal product industries.
Sales in the transportation equipment industry rose 8.2 percent to $10.4 billion, after falling 13.6 percent in July. This growth was the result of gains in the motor vehicle (+12.9 percent) and motor vehicle parts (+5.7 percent) industries, primarily reflecting higher volumes generated by increased production after the longer-than-usual shutdowns of motor vehicle assembly plants in July.
Sales in the petroleum and coal product industry increased 3.2 percent to $4.8 billion in August—a second consecutive monthly gain. The increase primarily reflected higher prices for petroleum and coal products. After removing the effect of price changes, sales volumes decreased 1.3 percent in August.
Sales were also up in the primary metal (+3.1 percent), machinery (+4.0 percent), beverage and tobacco product (+4.2 percent) and wood product (+1.6 percent) industries. These gains were widespread and were the result of higher volumes in these industries.
Inventories in the manufacturing sector were steady at $73.9 billion in August, with higher inventories in the machinery industry offset by lower inventories in the petroleum and coal product industry. The inventory-to-sales ratio fell from 1.40 in July to 1.38 in August.
Total unfilled orders for the manufacturing sector were unchanged at $86.2 billion in August. More unfilled orders in the aerospace product and parts, and the electrical equipment, appliance and component industries were offset by fewer unfilled orders in the computer and electronic product and machinery industries.
New orders rose 4.4 percent to $53.6 billion in August, following three consecutive monthly declines. The gain was mostly attributable to more new orders in the transportation equipment; electronic equipment, appliances and components; and the petroleum and coal product industries.