Manufacturing sales up in November, government scraps duties on imported food ingredients

food tariff Canada manufacturing November Statistics Canada EDIWeekly

On the strength of higher sales in primary metal products, petroleum and coal products and chemicals, Canada’s manufacturing sales rose 1.5 per cent in November, to $51.8 billion, reports Statistics Canada. Metal manufacturers reported the largest gain, 9.1 per cent, with makers of iron and steel pipes posting the largest gains in dollars. Petroleum and coal product sales rose 3.7 per cent, attributable to the reopening of several refineries after partial shutdowns in the previous months. Petrochemicals, pharmaceuticals, and medicine manufacturing accounted for higher sales, up 3.4 per cent, in the chemical manufacturing sector. In all, sales were up in fourteen of the twenty-one manufacturing industries tracked, and in all provinces but New Brunswick.

In a move that has received little media attention, the federal government has implemented new cuts to tariffs on certain imported foods. CBC news reported that agri-food ingredients like fruits, vegetables, cereals, grains, spices, fats and oils, and chocolate products, which previously were subject to $48 million in tariffs, are now classified as duty free. The move is intended to help Canada’s food manufacturing industry, which has notoriously tight margins, to compete. The vice president of the largest industry group in the country, Food & Consumer Products of Canada, called it a “really positive” step, while the president of the Food Processors of Canada commented that “every little bit helps.” Food manufacturing employs about 300,000 Canadians, and it is the largest employer in rural Canada.

manufacturing November Statistics Canada EDIWeekly

Retail sales were also up, though slightly (0.2 per cent), in November, led by sales of motor vehicles, including cars, RVs, motorcycles and boats, and car parts. Sales of home renovation products, home furnishings, and garden equipment and supplies were also up. The largest gains in dollar terms were seen in Ontario. Total sales for the month came in at $45.2 billion.

Meanwhile, the consumer price index rose 1.5 per cent in December, remaining below forecasts of 2 per cent. Food prices actually fell 1.3 per cent in December, the third straight decline, while gasoline prices were up 5.5 per cent after a decline of 1.7 per cent in November.

The low inflation rate, while it may be welcome to consumers, reflects economic slack in the system and slow growth, according to economists. The Bank of Canada’s target inflation rate is 2 per cent, though the rate has not exceeded that for two years.

Did you miss this?

Other Popular Stories

  • Ontario homebuilder first to offer power storage system as option
  • January manufacturing sales best ever: Statistics Canada
  • Grid-scale electricity storage solution from New York startup
  • Oil Industry News: Oil Companies Shedding Assets
  • Magellan gets $110 million contract for Canadian satellite program
  • Cascade Aerospace named a Hercules heavy maintenance centre
  • Google Increasing Artificial Intelligence in Military Spy Drones
  • Record car sales reported in Canada, US for October
  • Renewables poised for big growth in short term: IEA
  • Ontario's manufacturing output "robust" in May: RBC
  • Canada risks losing out in renewable energy revolution
  • Pembina set for biggest expansion in its history
  • Regina refinery will reuse all water with GE wastewater technology
  • Lower Model 3 prices can't prevent Tesla's slide by 3% after deliveries fail to impress; Tesla opens orders to Europe and China
  • Manufacturing sales up in November, government scraps duties on imported food ingredients
  • Local Ford union rebellion over GM contract threatens pattern bargaining
  • Alphabet's Chairman praises Toronto technology as Google's Sidewalk Labs announces living "technology lab" for Toronto Portlands
  • For some car makers March was best ever
  • Public support for refurbishing nuclear at all-time high: survey
  • Canada's manufacturing sales rose in 2016, led by cars, food
Scroll to Top