Ontario's motor vehicle parts industry experienced a drop in sales in June but it was partially offset by a significant increase in sales of motor vehicles. PHOTO courtesy DCM.
Manufacturing sales fell in five provinces in June, led by Alberta and Ontario, according to Statistics Canada. Sales in Quebec increased the most.
In Alberta, sales decreased 8.0% to $8.5 billion in June, the lowest level since January 2022, largely on lower sales of petroleum and coal products (-12.8%) and chemicals (-17.6%). The decline in the petroleum and coal product subsector was the main contributor to a 9.6% decrease in total sales in Edmonton. With the decline in June 2023, total sales in Alberta were 8.4% lower compared with June 2022 and decreased 2.8% in the second quarter of 2023 compared with the first quarter.
Sales in Ontario fell 1.1% to $32.6 billion in June, mainly driven by the motor vehicle parts industry group (-7.1%), as well as the petroleum and coal product (-10.0%) and machinery (-7.2%) subsectors. The declines were partially offset by a 10.9% increase in sales of motor vehicles. Sales in Toronto declined 3.5% to $13.2 billion in June, largely on lower sales in the transportation equipment subsector (-4.2%). Sales of transportation equipment in Toronto were at their highest level on record in May.
In Quebec, sales rose 1.0% to $17.7 billion in June, on higher sales of primary metals as well as chemical products. Despite lower prices for primary non-ferrous metal products in June (-3.7%), their sales were up, mostly due to the end of an unplanned shutdown in a non-ferrous plant in Quebec. Despite the gain in total manufacturing sales in Quebec in June, sales in Montréal fell 2.1% on lower production of aerospace products and parts (-6.6%), while Québec posted an 8.1% decline due to lower sales of petroleum and coal products. On a year-over-year basis, total sales in the province were down 3.5% in June.
