Small uptick in manufacturing sales reported

OTTAWA — The first increase in seven months, manufacturing sales scaled upwards by a modest 2.2 percent to $42.9 billion in February.

Motor vehicle and motor vehicle parts industries in Ontario were behind most of the gains — the first month-to-month increase since July 2008 — as manufacturers came back online after holiday shutdowns in January, reports Stats Canada.

While sales in motor vehicles are still 40 percent below levels from a year earlier, manufacturers a 34.5 percent sales gain in February from the previous month, while parts sales were up 38.5 percent. This is consistent with the boost in exports Stats Canada reported last week. 

Excluding the boost in that sector, however, manufacturing sales fell by 0.2 percent.

Primary metal manufacturers reported a 3.5 percent — goods news for primary metal sales, which have fallen by one-third since October 2008.

Petroleum and coal product sales decreased 3.3 percent in February following an 11 percent gain in January.

Sales in 9 of 21 manufacturing industries increased in February, accounting for about 45 percent of total sales. Ontario led the way with a 7.2 percent bump, with Newfoundland (+8.4%) and Saskatchewan (+3%) posting notable gains as well.

Manufacturing in B.C. declined 2.5 percent in February due to weakness in the wood and paper product industries.

Inventory levels remained virtually flat, decreasing only 1 percent to $66.9 billion.

The inventory-to-sales ratio decreased for the first time since July 2008, decreasing to 1.56 in February.