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Canadian manufacturers' sales were up 0.8% in June

August 16, 2016

Statistics Canada announced that manufacturing sales rose 0.8% to $50.2 billion in June, following a 1.0% decline in May.

The federal agency says higher sales of machinery and transportation equipment products were largely responsible for the gain. Nearly three-quarters of the increase in June was attributable to these two industries.

Sales in the machinery industry rose 5.8% to $2.7 billion, after five consecutive monthly declines. The gain in June was the largest since September 2015 and stemmed from higher sales in the commercial and service machinery, agricultural, construction and mining machinery, and industrial machinery industries. Some types of machinery in these industries take many months to manufacture. As such, the advance in June partly reflected the delivery of orders placed several months ago.

In the transportation equipment industry, sales were up 1.4% to $10.7 billion in June, following a 2.5% decline in May. The increase in June was mainly due to higher sales in the motor vehicle parts and motor vehicle assembly industries. The gains in both industries primarily reflected higher volumes, following lower production levels in May.

Following a 0.8% gain in May, the food manufacturing industry posted the largest decline in June, at -1.2%, reflecting lower sales in the dairy and meat products industry. Sales also decreased in the primary metal (-1.1%) and paper (-1.8%) industries.

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