According to Statistics Canada, manufacturing sales rose 4.1 percent to $73.9 billion in January, with increases in 16 of 21 industries. The petroleum and coal product (+10.1 percent), motor vehicle (+13.4 percent) and food (+3.4 percent) industries led the increases, while the aerospace product and parts (-11.2 percent), chemical (-2.8 percent) and wood (-4.9 percent) industries posted the largest declines.
Total inventory levels grew 0.3 percent to $120.7 billion in January, driven by higher inventories in the machinery (+4.6 percent), primary metal (+3.0 percent), food (+2.2 percent) and beverage and tobacco (+7.2 percent) product industries. In contrast, inventories of chemical (-6.3 percent) and petroleum and coal (-3.3 percent) products posted the largest decline. Of the inventory components, raw materials (+0.9 percent) and goods in process (+0.3 percent) rose, while finished products declined 0.6 percent. In constant dollar terms, total inventories were up 0.2 percent in January.
The inventory-to-sales ratio declined from 1.70 in December to 1.63 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.
After three consecutive monthly declines, the total value of unfilled orders rose 1.0 percent to $109.7 billion in January, mainly on higher unfilled orders of other transportation equipment, fabricated metal products and electrical equipment, appliance and component industries. Lower unfilled orders of aerospace product and parts partially offset the increase.
The value of new orders increased 7.1 percent to $75.1 billion in January, following three consecutive monthly decline. Higher new orders of transportation equipment (+22.9 percent) and petroleum and coal products (+12.0 percent) industries contributed the most to the growth.
The capacity utilization rate (not seasonally adjusted) for the manufacturing sector rose from 76.1 percent in December to 78.4 percent in January, with notable increases in the petroleum and coal product (+6.7 percentage points) and transportation equipment (+4.6 percentage points) industries. The decrease was partly offset by lower capacity utilization rates in the computer and electronic product (-5.7 percentage points) and miscellaneous (-1.3 percentage points) industries.