Canadian manufacturing inventories are being drawn down, the latest data from Statistics Canada indicates. PHOTO courtesy Advanced Manufacturing.
Total Canadian manufacturing inventory levels declined 0.7% to $122.4 billion in July, on lower raw materials (-1.6%) and goods in process (-0.9%), while finished products (+0.7%) increased slightly, according to Statistics Canada.
The inventory-to-sales ratio decreased from 1.74 in June to 1.70 in July. This ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.
The total value of unfilled orders declined 1.0% to $103.3 billion in July, primarily driven by lower unfilled orders of computer and electronic products (-2.7%) and aerospace products.
