The manufacturing sector is humming right along, according to figures released this morning by Statistics Canada.
The agency reports Canadian manufacturing sales unexpectedly jumped 1.0% in November, marking the third consecutive month of sizable increases following 0.7% (was 1.0%) and 0.8% (was 0.6%) gains in October and September, respectively.
In contrast to the earlier months when the increase was more broadly-based, however, StatsCan says the increase in November largely reflected a 21.3% jump in the volatile aerospace component as well as a 5.0% rise in motor vehicle sales. Outside of these two components sales declined 0.1% in November, led by a 1.5% drop in food sales.
Controlling for the impact of prices, the volume of manufacturing sales rose 0.7% to build on 0.6% (was 1.0%) and 1.2% (was 1.0%) increases in October and September, respectively, although, as was the case in nominal terms, much of the volume increase in October likely was concentrated in rising aerospace sales. Manufacturing inventories rose 0.2% in November, down from a 1.6% surge in October.
"With underlying conditions," opine experts at RBC Ecoomics, "including stronger growth in the U.S. economy and a weaker Canadian dollar, still supportive for the sector in the near-term, this points to a likely second consecutive quarterly increase in manufacturing sale volumes in Q4 after a 3.5% Q3 gain that followed four straight quarterly declines."
