Manufacturing sales in Canada rose 1 per cent to $50.4 billion in April, following two consecutive monthly declines, according to Statistics Canada Wednesday. As well, regional Fed surveys and the ISM manufacturing index were released in the US this week.
Canada, US Manufacturing:ย April and June 2016
Canada’s manufacturing sales increased in 10 of 21 industries, representing 55 per cent of Canadian manufacturing sales.
In constant dollar terms, sales were up 1.4 per cent, indicating that higher volumes of manufactured goods were sold in April. Prices for the manufacturing sector fell 0.5 per cent, according to the Industrial Product Price Index.
Sales increased in six provinces, with Alberta, Quebec and Ontario posting the largest gains.
Inventories fell for the third consecutive month in April, decreasing 0.4 per cent to $70.9 billion, the lowest level since December 2014. Inventories dropped in 15 of 21 industries.
Transportation equipment recorded the largest decrease, with inventory levels down 1.2 per cent.
This decline was the result of lower inventories of aerospace products and parts (-1.4 per cent), motor vehicles (-1.7 per cent), and motor vehicle parts (-1.5 per cent).
These declines were partly offset by higher inventories of primary metals (+2.0 per cent).
Meanwhile, in the US, from the Philly Fed: June 2016 Manufacturing Business Outlook Survey:
The diffusion index for current activity rose almost 7 points, to 4.7, and returned to positive territory this month after two consecutive negative readings.
The average of the Empire State and Philly Fed surveys turned positive in June (yellow). This suggests the ISM survey will probably indicate ex- pansion this month.
This was above the consensus fore- cast of a reading of 2.0 for June.