If the advance estimate for July manufacturing sales proves accurate, it's an indication of manufacturing's feisty resilience in the face of economic headwinds. PHOTO courtesy Lincoln Electric.
Advance results from Statistics Canada indicate that total manufacturing sales increased 0.7% in July, bouncing back from June’s drop.
The primary metals sector experienced one of the largest increases.
Statistics Canada provides advance estimates of monthly sales in the manufacturing sector as a way to stay ahead of rapidly evolving economic situations. The estimate was calculated based on a weighted response rate of 68.0%. The average final response rate for the survey over the previous 12 months has been 94.7%. As Statistics Canada continues to collect data for the July reference month, the early indicator is subject to a higher revision rate than its regular monthly release.
In June manufacturing sales had decreased 1.7% to $71.5 billion, on widespread declines over 14 of 21 subsectors. Sales of motor vehicles, however, were strong, rising 11.4% to $5.6 billion during the month.
On a quarterly basis, total Canadian manufacturing sales fell 0.8% in the second quarter of 2023. If the advance estimate proves accurate it means Canadian manufacturing started the third quarter on a positive note, an indication of the sector’s resilience in the face of rising interest rates and continued forecasts of recession that have so far failed to materialize.
