Cars and car parts provided most of the momentum for Canada’s manufacturing industry in November, pushing sales higher after three consecutive months of decline, Statistics Canada reports. Total manufacturing sales were up 1 per cent to $50.8 billion for the month, led by Ontario’s auto industry. In general, non-commodity related industries performed well while commodities industries fared less well.
Vehicle sales increased by 3.8 per cent in November, the sixth consecutive monthly increase. Compared to one year ago, vehicle sales were up an impressive 18 per cent, raising the auto sector’s share of total manufacturing for the month to 10.9 per cent. Statistics Canada says that the large increases in car and truck sales over the past year reflect increases in the value of vehicles being assembled here. All five of the big auto makers that build cars in Canada have shifted their production to higher value models, or they have upgraded the models they already produce. The price of cars and trucks rose 12.8 per cent in the twelve months ending in November.
Car parts sales also rose, by 2.6 per cent. It was the fourth gain in five months.
Aerospace parts production rose 11.5 per cent with widespread gains reported in the industry. Nevertheless, aerospace production saw a decline of 7.6 per cent in the three months ending in November compared to the three months ending in August.
Miscellaneous manufactured goods, electrical equipment, appliances and components all experienced higher sales in November.
In Ontario, manufacturing sales growth was 1.5 per cent, led by the auto sector. Compared to the same month last year, sales were up 4.9 per cent in November. Gains in Ontario were widespread, with higher sales in eighteen of the twenty-one industries. Even primary metals and petroleum products saw sales gains in Ontario, despite posting large declines in the rest of the country.
Partially offsetting the gains were declines in sales of some transportation equipment, primary metal and petroleum products, and coal products.
Wholesale sales also rose in November, again led by the auto sector. It was the first increase in five months, up 1.8 per cent to $55.9 billion. Auto and auto parts accounted for $10 billion of those sales, an increase of 4.8 per cent. Again, Ontario saw the greatest sales growth at 2.3 per cent. This came after three consecutive months of decline.
