Global car sales accelerated through the summer, a new report from Scotiabank said, with volumes advancing 4.5% above a year earlier in August, double the growth of the previous three months.
Canada’s economy is on pace to match the best annual growth performance since the Great Recession, a new report from BMO Capital Markets Economics and BMO Commercial Banking said, with real GDP likely to expand 3.1% this year, up from 1.5% in 2016.
The transportation equipment and petroleum and coal product industries post the largest gains, the agency said.
The report from DesRosiers Automotive Consultants says investment has been almost cut in half, noting “Canada’s loss of investment market share to Mexico and the southern U.S. over this period has been well documented.”
The trade surplus with the U.S. narrowed to $2.3 billion in August, StatsCan said, but the country’s trade deficit with countries other than the U.S. slipped to $5.7 billion.
U.S. purchases rebounded to a cycle-high in September, Scotiabank said.
In particular, the Association supports the plan’s lower corporate tax rate, immediate expensing of capital investments, and the preservation of the research and development tax credit.
Manufacturers are also more confident about the year ahead business outlook than at any time since April, the Markit Canada Manufacturing Purchasing Managers’ index report said.
In Canada, auto industry output is advancing nearly four times faster than the overall growth rate of manufacturing as a whole, the new report from Scotiabank said.
The shipments value of injection molding machinery increased 9 per cent in Q2, the shipments value of single-screw extruders declined by 16 per cent, the shipments value of twin-screw extruders jumped 56 per cent, and the shipments value of blow molding machines slipped down by 2 per cent in Q2, the report said.
U.S. fleet volumes began to stabilize from the double-digit decline of recent months, Scotiabank also said.
The expanding global economy is leading to a re-acceleration in global auto sales, Scotiabank’s latest Global Auto Report said, and this economic growth is also lifting purchases in Canada
Canada’s gross domestic product grew by 1.1 per cent between March and June, an improvement from the 0.9 per cent growth seen in the previous three-month period, the agency said.
Results of the new 17th annual North American Automotive OEM-Supplier Working Relations Index study revealed that GM now ranks ahead of Fiat-Chrysler US, Ford and Nissan, which is now in last place.
At the same time, input cost inflation moderated to a nine-month low, with manufacturers attributing this to a stronger exchange rate against the U.S. dollar, the report by IHS Markit said.
But operating earnings for the Cincinnati, Ohio-based company for the second quarter of 2017 decreased 19.9% to US$28.6 million compared to operating earnings of US$35.7 million in the prior year period.
On the cusp of its merger with DuPont Co., chemical giant Dow Chemical Co.’s sales increased to US$13.8 billion in the first half of 2017, up 16 per cent year-over-year.
In a July 20 statement, the Mississauga, Ont.-based CME cautioned that the proposed reforms included in the “Fair Workplaces, Better Jobs Act” – including the controversial plan to raise minimum wage to $15 an hour by 2019 – could have unintended consequences affecting the competitiveness of the manufacturing sector and discouraging investments in Ontario.
After a summit in held Mexico City on July 5, the heads of the U.S.-based Plastics Industry Association, the Canadian Plastics Industry Association, and Mexico’s Asociación Nacional de Industrias del Plástico AC released a joint statement opposing new tariffs and supporting greater harmonization of regulations.
In the United States, meanwhile, most automakers reported better-than-expected sales last month, as demand continues to shift to crossovers, SUVs and pickup trucks, Scotiabank said.