According to Statistics Canada, manufacturing sales fell 0.4 percent to $58.6 billion in August, following three consecutive monthly increases. The decline was mainly due to lower motor vehicle sales. Excluding this industry, manufacturing sales rose 0.4 percent in August.
Sales were down in 7 of 21 industries, representing 50.9 percent of the Canadian manufacturing sector. Sales of motor vehicles fell 8.3 percent to $4.9 billion in August, following two consecutive monthly increases.
Primary metal industry sales fell 2.9 percent to $4.4 billion in August, a third consecutive monthly decline. The decrease in August reflected lower sales in the non-ferrous metal (except aluminum) production and processing industry. Conversely, seasonally adjusted sales in the iron and steel mills and ferro-alloy manufacturing, steel product manufacturing, and alumina and aluminum production and processing industries grew in August.
Inventory levels rose 1.1 percent to $83.9 billion in August. Inventory increased in 14 of 21 industries, with the largest gains in transportation equipment (+3.4 percent), food (+1.9 percent) and plastic and rubber product (+5.6 percent).
These increases were partially offset by lower inventory levels in the primary metal (-1.4 percent) and wood products (-2.3 percent) industries.
The inventory-to-sales ratio rose from 1.41 in July to 1.43 in August. The ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.
In August, unfilled orders rose 0.8 percent to $94.8 billion, after edging down 0.2 percent in July. Most of the gain came from a 0.8 percent increase in the aerospace product and parts industry. Unfilled orders were also up in the computer and electronic product and the fabricated metal product industries.
After two consecutive monthly decreases, new orders were up 1.1 percent to $59.3 billion in August. An increase in new orders in the aerospace product and parts and machinery industries were behind this gain.
The capacity utilization rate (not seasonally adjusted) of the manufacturing sector edged up 0.7 percentage points, from 79.5 percent in July to 80.2 percent in August. Following a 14.6 percentage point decline in July, the capacity utilization rate for the transportation industry increased from 73.4 percent in July to 81.5 percent in August. Shutdowns at several auto manufacturing plants were responsible for the decrease in July.
The capacity utilization rate of the primary metal industry, which includes aluminum and steel, edged down 0.3 percentage points to 77.8 percent in August.