Manufacturing has a setback

OTTAWA — While a manufacturing up tick in the U.S. is almost entirely behind the modest economic growth there, sales in Canada declined slightly by 0.8 percent in November to $44.9 billion.

Auto manufacturing declines in Ontario were mostly to blame, offsetting gains in sectors in most other provinces, Stats Canada reports.

Sales in the transportation equipment industry fell 7 percent, led by declines in motor vehicle (-9.2%) and motor vehicle parts (-6.5%) manufacturing.

Extended plant shutdowns due to retooling, as well as shift reductions, were key contributors to the lower sales.
Primary metal sales also declined, down 1.9 percent, reversing an upward trend in this sector throughout most of 2010.

Still, sales were 22.9 percent higher compared with the same month in 2009.

Outside of transportation and primary metals, many manufacturers reported gains compared with October. Computer and electronic product (+5.1%), food manufacturing (+0.7%), as well as beverage and tobacco product sales (+2.9%), all rose.
Inventory levels, meanwhile, increased 1.3 percent to $61.1 billion.