According to Statistics Canada, manufacturing sales rose for the fourth consecutive month, up 0.3 percent to $51.5 billion in September. The gain reflected higher sales in the transportation equipment and fabricated metal industries.
Sales were up in 12 of 21 industries, representing 70.1 percent of the total manufacturing sector.
In constant dollar terms sales edged down 0.2 percent, indicating that lower volumes of manufactured goods were sold in September. Prices for the manufacturing sector rose 0.4 percent in September according to the Industrial Product Price Index.
Sales in the transportation equipment industry rose 1.5 percent to $10.6 billion in September. The advance was the result of gains in the railroad rolling stock (+72.6 percent), the motor vehicle (+1.3 percent) and the aerospace product and parts (+3.8 percent) industries. The increase in the transportation equipment industry accounted for more than 85 percent of the total gain in manufacturing sales.
Fabricated metal product producers reported a 2.4 percent increase in sales to $2.7 billion, following two consecutive monthly declines. The gain in September was the largest since May 2015 and stemmed from higher sales in the architectural and structural metals, machine shops, and other fabricated metal products industries.
These increases were partly offset by a 3.4 percent decline in the primary metal product industry to $3.8 billion. The decline in September follows two consecutive gains and was concentrated in the iron and steel mills and ferro-alloy industry and in primary production of alumina and aluminum.
Inventories in the manufacturing sector rose 0.5 percent to $70.3 billion in September. Higher stocks in the transportation equipment, food, and chemical industries all contributed to the increase. The inventory-to-sales ratio increased from 1.36 in August to 1.37 in September.
Unfilled orders declined for the third consecutive month, down 0.2 percent to $88.6 billion in September. The decrease came mostly from lower unfilled orders in the fabricated metal product, electrical equipment appliance and component, and computer and electronic industries. These declines were partly offset by an increase in unfilled orders in the aerospace product and parts and machinery industries.
Unfilled orders declined for the third consecutive month, down 0.2 percent to $88.6 billion in September. The decrease came mostly from lower unfilled orders in the fabricated metal product, electrical equipment appliance and component, and computer and electronic industries. These declines were partly offset by an increase in unfilled orders in the aerospace product and parts and machinery industries.
New orders rose 2.3 percent to $51.3 billion in September, as a result of gains in the transportation equipment and machinery industries