Canada's manufacturing sales rebound in June

By anna smith

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.”
 

Follow @BizReviewCANADA

Read the August 2016 issue of Business Review USA & Canada magazine

SOURCE: [Financial Post]

Share

Featured Articles

How Elon Musk pulled off a $44bn hostile takeover of Twitter

As the world’s richest man, Elon Musk, takes over tech giant Twitter, we highlight the timeline that led to this titanic takeover

Amazon, Alphabet, Wells Fargo best workplaces, says LinkedIn

The top 50 workplaces to grow careers prioritise flexible work and tuition-support programs, as top-ranking firms Amazon and Alphabet prove, says LinkedIn

Top 10 women in technology in the US

These 10 women in tech are forging a path into bold areas of innovation and technological ambition, according to sister publication Technology Magazine

8 executive moves to crypto – from mainstream to startup

Technology & AI

Digital Twins tech ‘missing link’ in urban decarbonisation

Technology & AI

The Metaverse Foundry from Infosys is a business playground

Technology & AI