Manufacturing sales dip 1.2% in November as auto sector contracts
Statistics Canada reports manufacturing sales fell 1.2% to $70.8B in November, led by steep declines in motor vehicle and machinery sales. Petroleum and coal helped offset losses.
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By Torontoer Staff
Statistics Canada reports total manufacturing sales fell 1.2 per cent to $70.8 billion in November, pulled down largely by a sharp contraction in the auto sector. In real terms, sales were down 2.3 per cent for the month.
The agency cited notable drops in motor vehicle production and related parts, while increased sales in petroleum and coal products provided a partial offset.
Auto sector drives the decline
Sales of motor vehicles fell 15.9 per cent in November, according to Statistics Canada. The motor vehicle parts group declined 6.3 per cent. Together these falls were the largest contributors to the monthly decrease in overall manufacturing activity.
The machinery subsector also contracted, with sales down 3.2 per cent. The agency did not attribute the drops to a specific cause in its release.
Sales of motor vehicles fell 15.9 per cent, while the motor vehicle parts group dropped 6.3 per cent.
Statistics Canada
Petroleum and coal partially offset losses
Sales of petroleum and coal products rose 6.8 per cent in November. Statistics Canada said the increase stemmed from both higher prices and higher volumes, which helped to temper the overall decline in manufacturing receipts.
Despite the petroleum sector gain, real terms figures show a larger contraction. On a volume-adjusted basis, manufacturing sales fell 2.3 per cent, indicating that price effects supported nominal sales.
Wholesale sales also eased in November
In a separate release, Statistics Canada reported wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons as well as oilseed and grain, fell 1.8 per cent in November to $84.4 billion.
On a volume basis and excluding the same commodity groups, wholesale sales declined 2.3 per cent, mirroring the downward pressure seen in manufacturing.
Key monthly figures
- Total manufacturing sales: $70.8 billion, down 1.2 per cent
- Motor vehicles: down 15.9 per cent
- Motor vehicle parts: down 6.3 per cent
- Machinery subsector: down 3.2 per cent
- Petroleum and coal products: up 6.8 per cent
- Manufacturing sales in real terms: down 2.3 per cent
- Wholesale sales excluding petroleum and oilseed/grain: $84.4 billion, down 1.8 per cent
- Wholesale sales excluding those items in volume terms: down 2.3 per cent
Analysts will watch the next monthly release for signs of whether the auto sector slump represents a temporary pullback or a more sustained slowdown in manufacturing activity. For now, higher energy product sales have partially masked weaker production in durable goods industries.
manufacturingeconomyStatistics Canadaauto sectorwholesale
