Canada manufacturing sales for June rises 1.2%
Details of the report show
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Manufacturing sales was driven primarily by increases in sales of chemical products (+4.8%), motor vehicles (+4.8%), and machinery (+4.2%). Primary metal manufacturing sales saw the biggest drop (-6.9%). On a year-over-year basis, total sales were up 0.2% in May.
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Total sales in constant dollars went up by 2.2% in May, indicating a higher volume of goods sold. The Industrial Product Price Index fell by 1.0% in May.
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Sales of chemical products went up by 4.8% to $5.9 billion in May, led by higher sales of pesticide, fertilizer, and other agricultural chemical products in Alberta and pharmaceutical and medicine products in Ontario.
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Motor vehicle sales saw a rise of 4.8% to $4.9 billion in May. This was largely driven by higher production in Ontario, where most auto manufacturers sold more motor vehicles, leading to higher exports of motor vehicles and parts.
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Sales of primary metals saw the largest decline at 6.9% to $5.2 billion in May, mainly due to a decrease in demand causing a contraction of manufacturing activities worldwide, notably in China.
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Manufacturing sales increased in five provinces in May, led by Ontario and Alberta. Quebec saw the largest decline in sales.
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Total inventory levels fell by 0.6% to $122.8 billion in May. The inventory-to-sales ratio decreased from 1.72 in April to 1.69 in May.
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Unfilled orders decreased 1.5% to $105.0 billion in May, which was the lowest level since May 2022. The aerospace product and parts industry was the most significant contributor to this decline.
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The capacity utilization rate for the total manufacturing sector rose from 77.5% in April to 80.3% in May due to higher production
The prior month was revised lower offsetting the gains above expectations this month.
The USDCAD is little changed after the report> The USDCAD did reach a new low going back to September 2022 today reaching 1.30918. The price is now below the 50% midpoint of the move up from the October 2021 low. That level comes in at 1.3132.. It would take a move back above that midpoint level II tilt the bias back to the upside technically.