According to Statistics Canada, manufacturing sales increased 0.9 percent to $51.1 billion in August, reflecting higher sales of primary metal, and petroleum and coal products. Sales were up in 15 of 21 industries, representing 69 percent of the total Canadian manufacturing sector.
Sales in the primary metal industry advanced 3.6 percent to $3.9 billion, the second consecutive monthly gain. The increase in August partly reflected higher sales of iron and steel mill and ferroalloy, and non-ferrous metal products. The price of primary ferrous metal products rose 0.7 percent in August, according to the Industrial Product Price Index.
Sales in the primary metal industry advanced 3.6 percent to $3.9 billion, the second consecutive monthly gain. The increase in August partly reflected higher sales of iron and steel mill and ferroalloy, and non-ferrous metal products. The price of primary ferrous metal products rose 0.7 percent in August, according to the Industrial Product Price Index.
In contrast, sales in the transportation equipment industry fell 1.1 percent to $10.5 billion. The decrease was mostly due to lower sales in the motor vehicle industry (-2.2 percent), which coincided with unusual one-week shutdowns in August at some Canadian automobile assembly plants (these shutdowns, which typically last two weeks, are more customary in July). Sales also declined in the fabricated metals industry (-1.9 percent).
Manufacturing inventory levels decreased 0.5 percent to $71.0 billion in August, following a 0.8 percent increase the previous month. Inventories fell in 12 of 21 industries. The petroleum and coal product industry recorded the largest drop, with inventory levels down 5.9 percent, following two months of gains. These declines were partly offset by higher inventories in the transportation equipment industry (+1.1 percent).
The inventory-to-sales ratio declined from 1.41 in July to 1.39 in August, while unfilled orders fell 1.3 percent to $89.0 billion, a second consecutive monthly decline. The decrease in August was the result of lower unfilled orders in the aerospace product and parts industry (-2.9 percent). The decrease in unfilled orders was partially offset by higher unfilled orders in the railroad rolling stock (+5.9 percent) and primary metal (+6.6 percent) industries.
New orders fell for the second consecutive month, down 0.9 percent to $50.0 billion in August as a result of declines in the aerospace product and parts, and computer and electronic products industries. The decrease in August was partially offset by higher new orders in the primary metal and railroad rolling stock industries.