Canadian Manufacturing Sales Fell 1% in January

Manufacturing sales decreased 1.0% to $54.9 billion in January. Declines in the motor vehicles, the aerospace product and parts, as well as the primary metal industries were responsible for the overall drop.

Overall, sales were down in 14 of 21 industries, representing 56% of the Canadian manufacturing sector. Sales of durable goods declined 3.5% to $28.2 billion, while sales of non-durable goods increased 1.7% to $26.8 billion.

usdcad Canadian dollar graph, March 16, 2018

Sales of motor vehicles fell 8.0% to $4.9 billion, following two consecutive monthly increases. The decrease reflected mostly lower production because of atypical assembly plant shutdowns. In constant dollar terms, sales in the motor vehicle industry declined 7.5% in January, indicating that the decline in current dollars is mainly due to a reduction in volumes produced.

Production in the aerospace product and parts industry decreased 9.5% to $1.6 billion, following 4.4% increase in December. The January decline was partly due to the increase in the value of the Canadian dollar relative to the US dollar. Sales and inventories are used to calculate production in the aerospace industry and most inventories in the industry are held in US dollars.

Sales in the primary metal industry fell 2.8% to $4.1 billion, the second consecutive monthly decline. In constant dollars, sales in the primary metal industry were down 2.7%, indicating lower volumes of products were sold.

via StatsCan

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza