As semiconductor chip supply continues to improve in 2023, the number of motor vehicles manufactured and sold has increased significantly in 2023 compared with the same months a year earlier. PHOTO courtesy GM.
Manufacturing sales increased 1.2% to $72.9 billion in May, following a 0.1% decline in April, mainly driven by higher sales of motor vehicles (+4.8%) and machinery (+4.2%), Statistics Canada reports.
Year over year, total sales were up 0.2% in May of this year compared to May of 2022.
Total sales in constant dollars rose 2.2% in May, indicating a higher volume of goods sold. The Industrial Product Price Index fell 1.0% in May.
Motor vehicle sales rose 4.8% to $4.9 billion in May, following a 3.6% decline in April. Nearly all auto manufacturers in Ontario sold more motor vehicles in May, leading to higher exports of motor vehicles and parts (+3.8%). As semiconductor chip supply continues to improve in 2023, the number of motor vehicles manufactured and sold in Ontario increased significantly in 2023 compared with the same months a year earlier. That’s a very positive sign for Canadian job shops, many of which rely on the automotive sector as a key customer.
Job shops may also see a price break in their material costs as sales of primary metals fell 6.9% to $5.2 billion in May.
Statistics Canada reports that weakening demand led manufacturing activities around the world to contract, notably in China, resulting in lower sales in the non-ferrous metal (except aluminum) production and processing industry (-15.3%). Prices of primary non-ferrous metals also declined in May (-2.8%). Total primary metal sales in May were the lowest since June 2021 and fell 16.4% on a year-over-year basis.
