Canada's manufacturing sales rebound in June
Yesterday’s data shows that Canada’s manufacturing sector is showing gains. Statistics Canada revealed that Tuesday’s data improved on the 1.7 percent increase for June that analysts had predicted. This equates to a sales value of $50.2 billion.
Ontario is responsible for a large portion of the gains, which were driven by machinery and transportation equipment. Sales increased in 15 of the 21 industries tracked by the federal data agency.
Despite this recent success, monthly factory sales have decreased as often as they have increased, by various degrees.
Manufacturing data “has gone back and forth. It’s basically been fluctuating around the $50 billion mark per month,” said Mike Holden, director of policy and economics at Canadian Manufacturers & Exporters.
“So, it did go up in June. It was a decent increase and we saw some growth in some of the sectors that had been struggling recently — machinery, fabricated metals and motor vehicles. It’s too early to point to that as being the beginning of a turnaround. It’s good news. It’s better to be growing than not,” said Holden, who is based in Calgary.
“But I think we’d have to wait for a few more months of data before we point to that (June report) as a new upward trend.”
Paul Ferly, Assistant Chief Economist at RBC Economics also commented: “The jump in manufacturing sales supports our view that much of the May 2016 weakness was transitory and is consistent with our forecast that monthly gross domestic product rose by 0.5 percent in both June and July, following the 0.6-per-cent plummet in May.”
SOURCE: [Financial Post]