Manufacturing Posts Back-to-Back Declines

(April 27, 2020) -- Manufacturing sales edged down 0.3% to $49.1 billion in February, following a 1.3 percent decrease the month before.

Lower sales were recorded for the motor vehicle assembly, food, and motor vehicle parts industries. These declines were mostly offset by increases in the aerospace product and parts, non-metallic mineral products, and petroleum and coal products industries.

Sales decreased in 11 of 21 industries, representing about 64 percent of Canadian manufacturing.

Motor vehicle assembly sales were down 8.7 percent, the first decline since June 2011. Similarly, motor vehicle parts sales were down 7.2 percent, the first decrease since August.

Food manufacturers posted the second-largest decline in sales in dollar terms, down 3.1 percent to $6.9 billion -- largest decrease in the industry since June 2010.

The vast majority of the sales declines were in Ontario, where manufacturers reported a 2.7 percent decrease to $22.0 billion.

In contrast, manufacturing sales advanced 2.7 percent to $11.9 billion in Quebec reflecting higher sales in the petroleum and coal products and machinery industries.

Inventories, meanwhile rose 0.3 percent in February to $65.8 billion, the 16th gain in 17 months.