Canadian manufacturing sales rose 0.5 percent to C$53.7 billion (US$41.9 billion) in September, reflecting higher sales in the petroleum and coal product industry, according to Statistics Canada.
Overall, sales were up in 7 of 21 industries, representing 28.9 percent of the Canadian manufacturing sector. Sales of non-durable goods rose 1.7 percent to C$25.4 billion (US$19.8 billion), while sales of durable goods decreased 0.5 percent to C$28.4 billion (US$22.2 billion).
In constant dollars, sales increased 0.7 percent, indicating that higher volumes of manufactured goods were sold in September.
Sales rose in seven provinces in September, led by Quebec and New Brunswick.
Manufacturing sales in Quebec rose 1.7 percent to C$13.3 billion (US$10.4 billion), their highest value on record. The growth in September was largely attributable to the petroleum and coal (+24.9 percent) and the aerospace product and parts (+10.3 percent) industries. The increases were partly offset by a 2.8 percent decline in the food industry.
In New Brunswick, manufacturing sales rose 13.1 percent to C$1.7 billion (US$1.3 billion). This was their highest level since November 2014 and reflected higher sales of non-durable goods.
After increasing 2.3 percent in August, sales in Ontario fell 0.9 percent to C$24.4 billion (US$19 billion) in September. The decline was largely attributable to lower sales in the motor vehicle (-6.3 percent), motor vehicle parts (-2.7 percent) and primary metal (-3.6 percent) industries. These decreases were partially offset by a 5 percent increase in sales in the machinery industry.
In Alberta, sales declined 0.9 percent to C$5.8 billion (US$4.5 billion), following a 1.6 percent increase in August. The overall decline in September was largely driven by lower sales in the food product (-4.3 percent) and chemical (-2.7 percent) industries.
Sales in the petroleum and coal product industry grew 10.3 percent to C$5.5 billion (US$4.3 billion) in September, the third consecutive monthly gain. The increase reflected gains in prices and volumes for petroleum and coal product. After removing the effect of price changes, sales in volume terms increased 6.7 percent in September.
Sales in current dollars also increased in the machinery (+1.9 percent) and paper (+1 percent) industries. Sales in constant dollars for these industries increased 2.1 percent and 1.4 percent, respectively, indicating that higher volumes of goods sold were responsible for the gains.
Partially offsetting these increases in current dollars were declines in the food and transportation equipment industries. Sales in the food industry were down 1 percent to C$8.4 billion (US$6.6 billion) in September. Widespread decreases in sales were reported, and reflected lower prices and volumes. After removing price effects, sales volumes of the food industry declined 0.4 percent in September.
Overall sales in the transportation equipment industry declined 0.7 percent to C$10.3 billion (US$8 billion), although increases in the railroad rolling stock industry (+66.8 percent), other transportation equipment (+36.5 percent) and aerospace product and parts (+5.6 percent) were posted in September. These gains were not sufficient to offset decreases in the motor vehicle (-5.9 percent) and motor vehicle parts (-2.5 percent) industries. After removing price effects, volumes sold declined by 4.5 percent and 1.2 percent respectively in these industries, following strong volumes in August.
Inventory levels fell for the fourth consecutive month, down 0.7 percent to C$73.3 billion (US$57.2 billion) in September. Inventories were down in 10 of 21 industries, led by the transportation equipment (-2.8 percent), primary metal (-2 percent) and machinery (-1.7 percent) industries. These decreases were partially offset by a 4.1 percent rise in the petroleum and coal product industry.
The inventory-to-sales ratio fell from 1.38 in August to 1.36 in September. The inventory-to-sales ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.
