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Mfg Sales Up on Month, Down on Year

Manufacturing sales rose 1.2% to $50.8 billion in June, the second consecutive gain and the third increase since January 2015, according to figures released Friday morning by Statistics Canada.

But despite the gains in June, year-to-date sales were down 1.5% from the same period in 2014.

Constant dollar sales increased 0.5%, indicating a higher volume of goods sold.

The agency went on to say sales increased in 18 of 21 industries in June, representing 80% of the manufacturing sector. Higher sales of chemical products and motor vehicles led the gains. Lower sales of fabricated metals partly offset the advance.

Sales of chemical products rose 5.4% to $4.1 billion in June. Typically, sales of pesticides, fertilizers and other agricultural products peak in May and decline in June, once seeding in the agricultural sector has taken place. However, in 2015, some sales that normally occur in May took place in June.

Motor vehicles also contributed to the overall gains, as sales rose 4.2% to $4.9 billion, the third increase for the industry in 2015. On a year-to-date basis, sales of motor vehicles were up 5.6% from the same period in 2014. Year-to-date sales are at their highest level since 2007, the year before the industry reported significant losses as a result of the recession.

StatsCan reported that gain in manufacturing sales was widespread in June, with seven provinces recording increases. Quebec posted the largest sales gain, followed by Alberta and Ontario. Declines in New Brunswick partially offset the growth.