Canadian Manufacturing Sales Up In June

OTTAWA (CP) -- Manufacturing sales rose 1.9 percent to $39.7 billion in June, partially reversing a 4.9 percent decline posted in May, Statistics Canada said Friday.

The agency attributed the increase to strong sales in the aerospace industry and a rise in the price of petroleum and coal products.

Constant dollar manufacturing sales rose 1.1 percent in June, indicating that greater sales volumes were responsible for more than half of the increase in sales.

Sales rose in 12 of 21 manufacturing industries in June, representing 68 percent of total sales.

Strength in the aerospace and petroleum industries was partly offset by lower auto sales.

Aerospace sales jumped 61.0 percent to $1.6 billion, offsetting a 44.5% decline in May.

Sales of petroleum and coal products industry rose 6.9 percent, reflecting higher prices for petroleum products. In addition, several refineries increased production in June.

Non-metallic mineral products rose 5.6 percent, furniture and related products were up 4.9 percent and wood products increased by 3.5 percent.

The weak spot was the auto sector, where sales fell 6.0 percent after a 20.8 percent. This weakness reflected several plant shutdowns. In contrast, motor vehicle parts manufacturing edged down only 0.1 percent in June.

Provincial manufacturing sales results were mixed. Sales rose significantly in Newfoundland and Labrador, up 58.0 percent and increased 7.2 percent in New Brunswick.

In Quebec, sales increased 5.7 percent in June, partly reversing an 8.6 percent drop in May. The province's numbers were bolstered by a strong showing in aerospace production, which rose 82.5 percent to $1.1 billion.

Sales in Ontario edged down 0.3 percent in June, largely the result of the decline in motor vehicle manufacturing and a drop in primary metals.

Sales were also off in Prince Edward Island (down 13.2 percent) and Nova Scotia (off 2.8 percent).

Manufacturers reported a 0.1 percent decline in inventories compared to May, with levels falling to $62.7 billion. This was the fifth consecutive monthly decline.

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