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Manufacturing sales at highest level in almost three years


Post Date: 15 Oct 2011    Viewed: 432

OTTAWA — Manufacturing sales were up more than expected in August, reaching their highest level in almost three years, Statistics Canada said Friday.


The federal agency said sales from factories were up 1.4 per cent in August, on a seasonally adjusted basis, to $47.6 billion. That's the highest value since October 2008.


The results surpassed the forecast of a 0.5 per cent gain by economists. July's figures were revised to to show a three per cent gain, up from the 2.7 per cent rise previously reported.


"This month's results extend a positive sales trend, but keep in mind that the recent two-month growth sequence merely makes up for ground lost in the second quarter of the year," economist Jacques Marcil said in a morning commentary published by TD Economics.


"With about one-third of our manufacturing sales going to the U.S., we are not expecting breakneck growth for the rest of the year. Signs point to improved auto industry shipments stateside, but these are vulnerable to buyer confidence, which remains weak. At the same time, the recent softness of the Canadian dollar will provide offsetting support."


Statistics Canada said August's factory-sale gains were concentrated in sectors such as transportation equipment, food, and petroleum and coal products.


Transportation-sector sales were up seven per cent. Gains includes sales of products associated with aerospace, rail and marine travel, more than making up for declines in the automotive sector.


Gains were seen in most provinces, with notably strong results in Ontario, Quebec, and Newfoundland and Labrador. Nova Scotia and Manitoba were the only provinces to see declines in manufacturing sales in August.


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