Manufacturing sales up in December but down for the year on weak energy sector

Wood-products-Statistics-Canada-oil-industry-Alberta-manufacturing-EDIWeekly
Sales of wood products were up 5.5 per cent in December, their highest level since December 2006, according to Statistics Canada.

Alberta’s weakened energy sector continues to pull the country’s manufacturing sales down. For the sixth consecutive month, sales of petroleum and coal products were lower in December than in the previous month, by 2.4 per cent. In all, Alberta’s manufacturing sales contracted by 16 per cent in December and 28.6 per cent for the year, enough to offset gains made in several other sectors and contribute to a net 1.5 per cent drop nationally for the year. This made 2015 the first year in which manufacturing sales fell on an annual basis since 2009. Annual manufacturing sales came to $609.5 billion in 2015, Statistics Canada reports.

Despite the drag from the energy sector, manufacturing sales were up a fairly robust 1.2 per cent for the month of December, coming in at $51.6 billion. It was the second consecutive monthly increase, Statistics Canada said, with increases in seven provinces. According to Thomson Reuters, economists had expected a gain of just 0.7 per cent in December. Sales of motor vehicles and wood products accounted for more than half of the monthly gain.

Wood-products-sales-Statistics-Canada-oil-industry-Alberta-manufacturing-EDIWeekly
Manufacturing sales in Canada. Source: Statistics Canada

Sales of cars and trucks were up 3.6 per cent in December. This was in part due to new models being released by some car makers in the fourth quarter, spurring consumer demand. The motor vehicle industry increases helped give Ontario manufacturers a 0.7 per cent gain in sales. There were also higher sales of industrial machinery in Ontario.

Sales of wood products, meanwhile, reached their highest level since 2006, rising 5.5 per cent in December. Statistics Canada notes that the industry has seen a turnaround in recent years, with greater foreign demand for Canadian lumber, millwork and forestry products.

On an annual basis, sales were up in twelve of the twenty-one industries reported on by Statistics Canada. The largest gain was in transportation equipment, with motor vehicles accounting for half of the dollar increase. Sales of cars and trucks were up 9.1 per cent for the year, while sales of car parts rose 8.9 per cent. Production of aerospace products and parts was up 10.2 per cent.

Did you miss this?

Other Popular Stories

  • Ford’s 347 kph GT: World's fastest supercar a testbed for new automotive technology
  • CAE to acquire Lockheed Martin flight training division
  • Ontario wants to be heard at Enbridge pipeline hearings
  • Ontario's food producers missing local growth opportunities: study
  • Calgary tech company says radio frequency oil extraction tests were successful
  • Talk of recovery in Canada's oilpatch as Encana posts better than expected earnings
  • SNC-Lavalin to build $4.2 billion Champlain Bridge in Montreal
  • U.S. and Mexico resume talks for NAFTA auto agreement — door open for Canada to return to negotiations
  • SpaceX "first orbital class rocket capable of reflight" test flight today: $12 billion in contracts and a 100 missions at stake: live feed of launch
  • Valves essential component of safe oil pipeline
  • Widespread gains in June manufacturing sales encouraging sign in sluggish economy
  • Bruce Power nuclear deal good for Ontario manufacturers: CME
  • GM/Honda latest partners in search for affordable fuel cell car
  • US energy self-reliance, pipeline uncertainty put Canada's energy sector at risk
  • Bombardier to build MRO facility in China
  • Seven electric vehicle trends for 2020 — forecasts, technology, solar and autonomous driving
  • Developing BC's LNG industry would generate $7.4 billion per year: report
  • Bombardier CS100 certified by Transport Canada
  • Magna International acquires German transmission giant
  • Bombardier upbeat about growth prospects now that CSeries jets are flying
Scroll to Top