January manufacturing sales best ever: Statistics Canada

January-manufacturing-sales-assembly-Canada-Statistics-sales-motor-vehicles-petroleum-Alberta-Ontario-EDIWeekly

A positive performance by Canada’s manufacturers has economists speaking of higher-than-forecast growth in the first quarter, and growing momentum in the manufacturing sector. Statistics Canada reports that manufacturing sales grew 2.3 per cent to a record $53.1 billion in January, the highest level on record. Ontario, where the auto industry played a big part in the gain, saw sales up 3.9 per cent, to $26.4 billion. Manufacturing sales were up in sixteen of the twenty-one industries reported on, making up more than 80 per cent of the sector.

Motor vehicle sales increased a hefty 9.6 per cent in January, to $6.6 billion, the highest level since November 2000. Two key factors were behind this strong growth, Statistics Canada says: changes in the industry toward higher-end models, and the lower Canadian dollar. A number of car makers retooled and upgraded their facilities last year to produce the higher-value models. While the number of cars produced did not change significantly, the average value of cars built has increased. Motor vehicles accounted for 12.5 per cent of all manufacturing in Canada in January, a level last seen in 2003.

The car parts industry also recorded an increase of 4 per cent, rising to $2.7 billion in sales, the fifth consecutive month to do so. Parts sales hit their highest level since December 2006, and the gains were widespread, Statistics Canada says.

January’s gains were widespread by region as well. Eight provinces reported higher sales, led by Ontario and Quebec. Only Alberta and Nova Scotia recorded declines. For Alberta, it was the sixth month out of seven in which sales fell. Lower sales of petroleum and coal products, and of fabricated metal products, were the reason for the decline. Manufacturing sales in Alberta fell by almost 16 per cent in 2015. About 80 per cent of the province’s manufacturing activity is petroleum industry related.

January-manufacturing-sales-Canada-Statistics-sales-motor-vehicles-petroleum-Alberta-Ontario-EDIWeekly
Manufacturing sales in January. Source: Statistics Canada

Unfilled orders rose in January for the first time in five months. Most of that gain was in aerospace products and parts, metal products, and clothing. New orders in those same industries also rose, rising 6.8 per cent.

The wholesale picture was at least partly positive in January as well. Higher sales were recorded in machinery and equipment, especially for the construction, forestry, mining and industrial equipment industries. Sales were up 6.4 per cent. Personal and household goods, food beverage and tobacco, and farm products all recorded higher sales in January. Sales of motor vehicles and parts decreased, however, by 2.8 per cent.

Did you miss this?

Other Popular Stories

  • Toyota celebrating 50 years in Canada with Special Edition Corolla S
  • Solar power companies report growth
  • March wholesale, retail sales lower in most sectors: Statistics Canada
  • Months, if not years, until balance restored in oil markets
  • Ontario missing out on $billions from federal government: study
  • Eleventh hour intervention by Marchionne secured Fiat Chrysler deal
  • Crude Oil Prices Uncertain as OPEC Meets to Discuss Supply
  • First wearable real-time translator device could change how we do business internationally
  • Keystone: will it all come down to emissions?
  • GM restructuring goes forward with agressive job cuts in Ontario designed to save billions of dollars — at the same time they recruit new hires?
  • Toronto an ideal location for Amazon HQ 2: If Amazon needs to hire tech employees, GTA and Canada has the edge
  • Manufacturing sector saw slight improvement in August: RBC
  • TransCanada's Energy East pipeline has building trades support
  • Automotive and chemical manufacturing pull up overall Canadian manufacturing sales to higher level than projected
  • Opponents of Enbridge pipeline reversal say spill risks too high
  • Canada one of the world’s most energy-intensive countries: 15 percent energy reduction possible through lighting, computer and HVAC retrofitting: Conference Board of Canada Report
  • Engineers Canada calls for more women to enter profession
  • Ontario invests $488,250 to create new jobs in Subdbury and expand research in mining.
  • Canada adopts ISO 20022 international electronic payment standard
  • LNG, fracking, desalination driving growth in industrial valves
Scroll to Top