Monday, June 15, 2015

Canadian Manufacturing Sales

Canadian manufacturing sales tumbled 2.1 per cent in April, the third decline in the last four months. Sales were dragged lower by declining sales in the food, aerospace, and petroleum and coal products industries.  In total, only 8 of 21 sub-sectors saw lower sales in April, but those industries account for two-thirds of Canadian manufacturing.  In BC, where manufacturing employs close to 170,000 people, manufacturing sales were down 0.7 per cent on a monthly basis in April, but were 3.6 per cent higher year-over-year. 

This morning's manufacturing data implies that the impact of low oil prices on the economy continued into the first month of the second quarter, with oil producing provinces suffering large declines in manufacturing sales. We expect that Canadian economic growth will rebound from disastrous first quarter in coming months, however it looks like the second quarter is off to a slow start. 

Copyright BCREA-reprinted with permission 

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