Manufacturing sales fell 1.5% (by $713 million) in June to $45.3 billion, the lowest level since November 2010. Sales have declined for three consecutive months after growing steadily since May 2009.
Figures released this morning by Statistics Canada also report that constant-dollar manufacturing sales were down 1.6% in June.
Sales of durable goods declined 1.9% in June, while sales of non-durable goods were 1.2% lower. In particular, sales were down in the petroleum and coal product, miscellaneous, and machinery industries.
Lower sales were reported in 15 of 21 industries, representing 77.5% of total manufacturing. In June, six provinces reported declines.
The agency went on to say sales of petroleum and coal products fell 6.6% in June to $5.8 billion. The decrease reflected price declines of 2.6% and lower volumes as a result of ongoing shutdowns for retooling at various plants.
Miscellaneous manufacturing sales fell 16.1% in June after rising 2.4% in May. The decline mainly reflected a drop in sales by manufacturers of jewellery and silverware.
Machinery manufacturing sales declined 4.2% in June after a 7.8% increase in May. Despite the drop, machinery sales remained strong and have risen in 14 of the past 17 months.
On the upside, sales in the chemical industry rose 5.8%, reflecting gains in the pesticide, fertilizer and other agricultural chemical industry.
StatsCan also said manufacturing sales were down in six provinces in June, with Ontario, Quebec, and Newfoundland and Labrador reporting the largest sales decreases.
In Ontario, sales fell 2.0% as 17 of 21 industries reported declines. The greatest decreases came in the miscellaneous, food, and transportation equipment industries.
Sales in Quebec declined 1.6% in June, as a result of decreases in petroleum and coal products, primary metals, and computer and electronic products. Increases in food and machinery sales partially offset the declines.
Sales in Newfoundland and Labrador fell 26.9% in June, as a result of declines in non-durable goods. It was the third consecutive monthly decline.
Manitoba posted the largest sales growth in June, up 3.9%. The increase was driven by advances in the chemical, primary metal, and machinery industries.
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