Manufacturing sales dropped 1.5 per cent in September: StatsCan

Triggered by lower sales in the motor vehicle assembly and the petroleum and coal product industries, manufacturing sales fell 1.5% to $51.1 billion in September, following a 0.6% drop in August, new figures from Statistics Canada show.

“In the motor vehicle assembly industry, sales fell 10.3% to $5.0 billion in September following four months of gains,” StatsCan said. “In August, sales had reached $5.6 billion, their highest level since March 2007. The decline in September mostly reflected lower numbers of vehicles produced. In contrast to the motor vehicle assembly industry, sales in the motor vehicle parts industry edged down 0.1% in September.”

On the plus side, higher sales in the machinery industry offset some of the declines. In the machinery industry, sales rose 9.6% to $2.9 billion as a result of widespread gains, StatsCan said.

Sales decreased in four provinces in September, with the largest decline in Ontario.
“In Ontario, sales were down 2.5% to $24.4 billion,” StatsCan said. “The decrease stemmed mostly from a 10.1% drop in motor vehicle assembly sales and a 7.1% decline in the petroleum and coal product industry. These decreases were partly offset by a 13.1% advance in machinery sales.”

Sales in Quebec declined 1.0% to $12.0 billion in September, the third consecutive monthly decrease, with the petroleum and coal product industry posting the largest decline. “Sales of aerospace product and parts, chemicals and fabricated metal products also fell,” StatsCan said. “Lower sales in these industries were partly offset by a 10.2% gain in the primary metal industry.”

Alberta manufacturing sales decreased 1.4% to $5.7 billion in September, StatsCan said, the third consecutive monthly decline. “The decrease was due to a 10.6% drop in petroleum and coal product sales,” StatsCan said. “Higher sales (+13.0%) in the machinery industry offset some of the decrease.”