Manufacturing sales in Canada rose 2.9 per cent to $51 billion in March, the second increase in six months. An increase in the production of aerospace products and parts coupled with gains in the motor vehicle industry generated higher sales for the month. Partially offsetting the advance was a drop in sales of fabricated metal products. The increase in March followed a 2.2 per cent decrease in February, which was revised to reflect updated information provided by respondents.
Sales rose in 10 of 21 industries, representing approximately 60 per cent of all Canadian manufacturing.
Inventories decline
Inventories held by manufacturers fell 0.4 per cent in March, the second decline in six months.
The inventory-to-sales ratio fell from 1.45 in February to 1.41 in March. The inventory-to-sales ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.