Total inventory levels increased 1.6% to $113.9 billion in May, mainly on higher inventories in the machinery (+4.3%), motor vehicle (+13.0%) and petroleum and coal product (+2.9%) industries, according to Statistics Canada.
Meanwhile, inventories of the miscellaneous (-7.2%) and aerospace product and parts (-1.1%) industries fell the most in May.
The inventory-to-sales ratio increased from 1.54 in April to 1.59 in May. This ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.
Unfilled orders slow down
Following six consecutive monthly increases, the total value of unfilled orders declined 0.8% to $103.0 billion in May, which was still the second highest level since March 2020. The decrease was mainly attributable to lower unfilled orders in the aerospace product and parts industry (-2.3%). Total unfilled orders were up 19.8% on a year-over-year basis in May.
The total value of new orders decreased 7.1% to $70.8 billion in May, largely due to a decline in new orders in the aerospace product and parts, motor vehicles, and chemical products industries.