Manufacturing sales see slight jump in May: StatsCan

Statistics Canada says manufacturing sales increased 0.7 per cent to $48.6 billion in May – the second gain in five months.

The bounce-back comes after an April that saw manufacturing sales fall 2.1 per cent, but even that number was upgraded from the previously reported 2.4 per cent drop.

Shipment volumes also rose 0.7 per cent as 11 of 21 industries registered gains. As well, future indicators also pointed upwards with new orders rising by 1.8 per cent after three consecutive declines and inventories dipping slightly after four months of build-up. Also, sales of durable goods increased 1.3 per cent and non-durable goods increased by 0.2 per cent.

Regionally in May, manufacturing sales were up 1.9 per cent in Ontario, 2.1 per cent in Alberta and 1.6 per cent in British Columbia. Sales were sharply down 2.8 per cent in Quebec.

According to some analysts however, the rebound did little to reverse what has been a sluggish year for manufacturing, a key sector for the overall health of the economy. Manufacturing sales remain 3.7 per cent down from December 2011 and 8.7 per cent below their pre-recession peak. Why? Canada’s manufacturing sector continues to wait on the U.S. economic recovery to regain momentum. As demand south of the border picks up, this should translate into a stronger performance for Canadian manufacturers – but it might take at least several months, as the U.S. economy still appears to be struggling to recuperate from government cutbacks mandated under the sequestering stand-off in Congress.