Strong manufacturing surge in August: StatsCan

Canada’s factory sector showed unexpectedly strong numbers in August, a development that could help rescue the third quarter numbers for the economy.

Statistics Canada reported manufacturing sales rose 1.5% to $49.5 billion during the month to the highest level since March 2012.

Adding sugar to the report, the agency also revised July’s 1.5% decline to 0.8%, putting an upside risk to projections that the July-September three month period will be the weakest since the spring of 2011.

The August result suggests the economy is still growing, a conclusion echoed in a similar strong report out of the U.S. that shows industrial production advanced 0.4% in September.

The Canadian manufacturing performance in August was strong across the board, StatsCan said, with 11 of 21 industries representing three quarters of the total manufacturing base reporting gains. In nominal terms, sales were up 1.8%, indicating a gain in the volume of manufactured goods sold.

Sales in the petroleum and coal product industry rose 8.6% to $6.8 billion, partly because some refineries emerged from slowdowns for maintenance and retooling.

The motor vehicle assembly industry roared back to life with 4.4% bump to $4.7 billion as some plants reported higher-than-usual seasonal increases following scheduled shutdowns in July.

Regionally, Ontario led the way with a 2.5% increase, while Quebec and Manitoba reported sales declines.