Canada’s manufacturing sales rose by 20.7pc to C$48.7bn ($36.7bn) in June, following an 11.6pc increase in May, according to a Statistics Canada report.
Sales across all 21 industries were up in June, with the motor vehicle and motor vehicle parts industry recording the most gains. Excluding the two sectors, manufacturing sales rose by 10.3pc in June. Canada’s capacity utilization rate also rose by 10.9pc to 73.3pc, as most factories were running at higher capacities, according to the report. However, total manufacturing sales in June declined by 13.2pc from February, the month before the pandemic began.
Manufacturing sales in Q2 2020 dropped by 22.8pc to C$125.3bn from C$162.4bn in Q1 2020. Manufacturing sales volumes also decreased by 20.5pc from the previous quarter, with the transportation equipment industry, among others, struggling through the quarter.
The transportation equipment sector was the hardest hit by the pandemic, as manufacturing sales plunged by C$1.1bn. This was followed by machinery decreasing by C$481mn, fabricated metal products declining by C$463mn, and primary metals dropping by C$260mn in June from a month earlier.
After all the industries resumed full production post-COVID-19 shutdowns, sales in the transportation equipment industry doubled in June to C$8.8bn from a month earlier. Motor vehicle and the motor vehicle parts industry led the way, increasing by 281.6pc and 190.3pc, respectively, while manufacturing sales of aerospace products surged by 66.8pc. The fabricated metal products and primary metal products sectors rose by a 9.9pc and 8.4pc, respectively.
Inventory levels in 14 of the 21 industries decreased marginally in June by 0.3pc decline to C$87.1bn. Inventory levels of transportation equipment dropped by 1.4pc, and fabricated metal products declined by 7.4pc, followed by the primary metal industry, which fell by 4.3pc.
Unfilled orders in June declined by 1.6pc to C$94.2bn from a month earlier, while new orders rose by 23.6pc to C$47.2bn.
C$1 = $0.75