’09 closes with Canadian manufacturing up

OTTAWA — Manufacturing sales rose 1.6 percent in December to $43 billion thanks mostly to gains in the transportation equipment industries like aerospace product and parts and motor vehicles, and some help from petroleum and coal products.

This was the sixth increase in overall manufacturing sales in seven months and the highest level since December 2008, Stats Canada reports.

Production in the aerospace rose 28.1 percent, following a 17.1 percent decline in November. Recently, the aerospace product and parts industry has been volatile compared with the overall manufacturing sector. 

Sales in the motor vehicle industry, which rose incrementally throughout 2009, increased 4.4 percent to $3.6 billion.

The advance in overall manufacturing, though, was partially offset by a 6.4 percent decline in the non-metallic mineral product industry.

Eight provinces showed stronger manufacturing sales — largest gain in Ontario, where sales increased by $438 million to $19.8 billion due to motor vehicles, primary metal and miscellaneous manufacturing.

New Brunswick reported an increase in sales of $156 million (+13.0%)– the third monthly rise after a 26.1% drop in September.

Meanwhile, inventory levels keep slipping, declining in December by a modest 1 percent in December to $59.0 billion. This was the 10th monthly decline in 2009, leaving inventories 11.3 percent lower than December 2008 levels.

Unfilled orders rose 2.3 percent to $52.4 billion following five consecutive monthly declines. Total unfilled orders for the manufacturing sector were 24.8 percent below the level in December 2008.