According to Statistics Canada, manufacturing sales rose 2.8 percent to $72.6 billion in October. Sales increased in 12 of 21 industries, led by the petroleum and coal (+12.7 percent), food (+2.9 percent), chemical (+4.9 percent) and miscellaneous manufacturing (+13.3 percent) industries. Meanwhile, motor vehicles (-3.2 percent) and machinery (-1.7 percent) posted the largest monthly declines. Compared with the same month last year, total sales were up 16.5 percent.
Total inventory levels increased at their lowest monthly pace, in dollar terms, since March 2021, edging up 0.3 percent to $122.2 billion in October, on higher prices as the volume of inventory levels dipped 0.8 percent in the same month. The gains were led by the primary metal (+2.8 percent), plastics and rubber (+2.6 percent) and wood product (+1.8 percent) industries and were partly offset by lower inventories in the aerospace product and parts (-2.9 percent), fabricated metal (-1.9 percent) and food (-1.1 percent) industries. Raw materials (+0.7 percent) as the largest component of the inventory contributed the most to the monthly gains, while finished products (+0.1 percent) and goods in process (+0.1 percent) changed little. Year over year, total inventory levels rose 22.3 percent.
The inventory-to-sales ratio fell from 1.73 in September to 1.68 in October. This ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.
Total value of the unfilled orders remained unchanged in October at $110.9 billion, as higher unfilled orders in the aerospace product and parts (+0.6 percent) and fabricated metal (+2.8 percent) industries were largely offset by lower unfilled orders in the computer and electronic product (-3.9 percent) and primary metal (-5.5 percent) industries.
The total value of new orders decreased 2.7 percent to $72.5 billion in October, mostly on lower new orders in the transportation equipment industry (-27.4 percent) and were partly offset by higher new orders in the petroleum and coal product industry (+12.7 percent).
The capacity utilization rate (not seasonally adjusted) for the manufacturing sector was down from 77.6 percent in September to 77.2 percent in October.
The capacity utilization rate decreased in 13 of 21 industries in October, notably in the primary metal (-5.0 percentage points), computer and electronic product (-2.4 percentage points) and transportation equipment (-1.4 percentage points) industries.
The decreases were partially offset by a higher capacity utilization rate in the petroleum and coal product (+3.3 percentage points) and chemical (+1.6 percentage points) industries.