Manufacturing ends 3Q on a high note

OTTAWA — Canadian manufacturing sales rose 1.4 percent in September to $41.7 billion, largely reflecting increases in the motor vehicle industry.

According to Stats Canada, manufacturing sales have increased in three of the past four months, after dropping to a recent low of $38.5 billion in May.

Despite the recent gains, sales still remain 18.6 percent below September 2008 levels.

Sales advanced in 14 of the 21 manufacturing industries.

Motor vehicle sales increased by 16.4 percent to $3.8 billion, the highest level since September 2008. Sales had fallen to as low as $1.6 billion in January 2009, due to extended shutdowns and poor market conditions.

Motor vehicle parts sales gained 13.7 percent in September, reflecting rising motor vehicle production, likely, as it recent export numbers reflect, to meet a bump in U.S. demand in the wake of the recent Cash for Clunkers program. 

Excluding motor vehicles, parts and accessories, manufacturing sales edged down 0.4 percent during the month.

Some of these gains were offset by a steep decline in the aerospace products and parts industry. Production fell 28.6 percent in September following a 34.2 percent drop in August, making the recent dip the lowest production level since June 2003.

Other than Ontario, where motor vehicle production was stronger than it had been previously, sales in Saskatchewan jumped 16.1 percent from August. This was due mainly as a result of a later than normal harvest this year, which had an impact on food manufacturers.

Most of the weakness in manufacturing was centered in Quebec and the Atlantic provinces. Quebec reported a 2.2 percent decline, largely due to the aerospace industry. Sales in the Atlantic provinces dropped 12.4 percent, mostly as a result of weak sales in the petroleum and coal products industry.

Meanwhile, inventory levels fell for an eighth consecutive month, decreasing 1.9 percent to $59.9 billion. This was the lowest level for inventory stockpiles since February 2000 and inventories decreased in 17 of 21 manufacturing industries.