Manufacturing drops a quarter in 8 months

OTTAWA — Manufacturing sales decreased another 2.7 percent to $41.4 billion in March, reversing February’s slight gain.

With this decrease, reports Stats Canada, manufacturing sales have fallen almost 25 percent from their peak reached in July 2008, with most of the drop occurring between November 2008 and January 2009. Durable goods industries such as aerospace parts and products, motor vehicle parts, and primary metal products were behind most of the losses in March.

Much of the decline in manufacturing sales was focused in Quebec, which accounted for slightly over half of the national decrease.

At the industry level, sales in 15 of 21 manufacturing industries decreased in March, accounting for about three-quarters of total sales. 

Motor vehicle parts sales decreased 17.6 percent in March, as manufacturers in this industry continued to struggle with the rapidly changing needs of motor vehicle plants.

However, the drop in the motor vehicle parts industry was offset by a 22.2 percent gain in motor vehicle sales which followed sizeable gains the month before.

Despite these recent gains, sales by motor vehicle manufacturers remain about 50 percent below levels from a year and a half ago.

Sales in Quebec fell by 6.1 percent to $10.5 billion, reaching their lowest level since June 2003. A 29 percent decline in aerospace products and parts manufacturing, were behind the fall.