Better than expected manufacturing data has helped to slow a decline in manufacturing sales.
Manufacturing sales were down 1.2 per cent in June, to $58 billion, after an increase of 1.6 per cent in May. However industry analysts had expected the decline to be greater, at 1.8 per cent.
Statistics Canada said sales fell in 16 of 21 industries, representing more than two thirds of total manufacturing sales, reports the Financial Post. The petroleum and coal product and food industries were responsible for the majority of the June decline. Statistics Canada reports that sales in the petroleum and coal product industry fell 3.8 per cent to $6.3 billion in June after five straight monthly increases. Much of that was because Eastern Canadian refineries experienced a fall in revenue thanks to lower prices.
For the second quarter, manufacturing sales rose 1.7 per cent to $174.5 billion. Despite the increase, one analyst quoted in the report warned that it “suggests soft momentum heading into the third quarter.”
One analyst warned that the outlook for manufacturing continues to be vulnerable to increased trade tensions and the continued softening of global growth.