Canadian manufacturing sales increased 1.2 percent to C$51.6 billion (US$37.2 billion) in December, led by higher sales in motor vehicle and wood products industries, according to Statistics Canada. Chemical products, miscellaneous products, ship and boat building, as well as other transportation equipment also posted higher sales, while lower sales of petroleum and coal products partly offset the gains.
In constant dollar terms, sales were up 1.3 percent, indicating that a higher volume of manufactured goods was sold.
In 2015, sales declined 1.5 percent, the first annual decrease since 2009.
Motor vehicle sales increased 3.6 percent in December and sales of wood products rose 5.5 percent. Exports of lumber and other sawmill and millwork products, as well as logs, pulpwood and other forestry products increased in December. A 2.4 percent decline in sales of petroleum and coal products partially offset the gains. Prices fell 5.3 percent for the industry, according to the Industrial Product Price Index.
Seven provinces posted higher sales in December. Quebec, New Brunswick and Ontario reported the largest gains, which were partly offset by lower sales in Alberta.
Sales increased 1.7 percent in Quebec, reflecting gains in 11 of 21 industries. In the wood products industry, sales rose 8.2 percent, as manufacturers reported higher than normal sales in December. Sales of primary metals (+3.2 percent) and chemicals (+5.6 percent) were up. In contrast to Canada as a whole, sales of petroleum and coal products increased in Quebec, contributing to the provincial gain.
Higher sales of non-durable products led to a 16.8 percent increase in New Brunswick. At the same time, exports of refined petroleum products rose in December.
Sales rose 0.7 percent in Ontario, a third consecutive increase. The motor vehicle industry was mainly responsible for the gain, as sales advanced 3.6 percent, reflecting increased demand for redesigned vehicles. Higher sales of machinery bolstered the gain in December, with sales rising 6.5 percent in the industry. The bulk of the increase stemmed from industrial machinery sales. A number of respondents in this sub-industry completed large contracts in December, which led to higher sales. Sales were down 7.7 percent in petroleum and coal products and down 6.2 percent in primary metals, offsetting some of the provincial gains.
Sales decreased 2.4 percent in Alberta, the sixth consecutive decline for the province. Lower sales of petroleum and coal products were responsible for the drop in December.
Inventories declined 1.6 percent in December, reflecting decreases in aerospace products and parts, as well as petroleum and coal. In the aerospace industry, manufacturers reported a 5.0 percent drop in inventories. Inventories fell 7.8 percent in the petroleum and coal industry, reflecting lower raw materials on hand. According to the Raw Materials Price Index, prices for crude energy products fell 11.9 percent in December.
