Manufacturing maintains steady trend

OTTAWA — Manufacturing sales edged up in June for the fifth time in six months thanks to increased prices. 

In current dollars, Canadian manufacturers reported $52.5 billion in sales, up 2.1 percent from June, according to Stats Canada.

Industrial prices for petroleum and coal, chemical products, wood products, and motor vehicles rose notably during the month.
Increases were widespread as 14 of 21 manufacturing industries, representing 81 percent of total sales.

The largest contribution in total manufacturing sales came from petroleum and coal product manufacturers. Sales increased by 6.4 percent in this industry, mirroring the 6.2 percent rise in prices observed for the month.

Sales by primary metal manufacturers also contributed significantly to the rise, gaining 6.1 percent compared with May, and rising for the eight straight months.

Motor vehicle manufacturers improved as well, posted their fourth gain in six months as sales rose 4.2 percent in June. But despite the recent strengthening, motor vehicle manufacturing sales only reached $4.2 billion, well below the $5.0 billion monthly average for 2007.

The Atlantic provinces were particularly strong in June, with manufacturing sales up 5.2 percent, led by strong sales of non-durable goods. The Prairie provinces also continued to report gains above the national average, with a 3.5 percent increase.

Inventory Levels Rise Again:

Inventories rose at about half of May’s rate, increasing by 0.6 percent in June to $66.7 billion. Petroleum and coal product inventories accounted for about half of the increase in total manufacturing inventories, rising 4.9 percent due to higher prices.