Summer lull for manufacturing

OTTAWA – Despite a small 1 percent monthly decrease in Canadian manufacturing, July 2010 sales were still 15.5 percent higher than the low reached in May 2009.

According to Stats Canada, several manufacturers reported a downturn from June. Sales in July fell in 12 of 21 industries — mainly in motor vehicles (-8%), paper (-5%) and furniture related products (10.7%) affecting Ontario and B.C.

Manitoba posted the largest increase in July, up a modest 1.7 percent on the strength of transportation equipment, food, and chemical product sales.

Inventory levels, meanwhile, rose 0.3 percent to $59.1 billion, continuing the slow downward trend since October 2008.

Though, the inventory increase — namely in paper, petroleum and primary metals — were largely offset by a 5.4 percent decrease in aerospace product and parts sector.

And despite a 1.1 decrease in unfilled orders in July, the backlog of orders at manufacturing plants across Canada has been gradually increasing since November 2009, reports Statscan.