Production in the aerospace product and parts industry rose 11.1% to $1.7 billion in September. PHOTO courtesy Airbus.
Following four consecutive monthly declines, manufacturing sales stayed steady at $70.4 billion in September, Statistics Canada reports.
Durable goods were the main source of sales growth in September, increasing 1.0% to $34.1 billion, following a decline of 2.0% in the previous month. Among durable goods manufacturers, aerospace product and parts (+11.1%), primary metal (+2.9%) and machinery (+3.6%) posted the largest gains during the month.
On a quarterly basis, sales in current dollars decreased for the first time since the second quarter of 2020, down 2.2% to $212.6 billion in the third quarter of 2022.
Aerospace product and parts industry posts the largest increase
Following a 4.0% decline in August, production in the aerospace product and parts industry rose 11.1% to $1.7 billion in September. Statistics Canada notes this is typical of the last month of the third quarter when deliveries are usually accelerated. A strong US dollar had an important role in the monthly growth as some large aircraft manufacturers reported their value in US dollars. In real terms, production in the industry increased 7.0% in September from the previous month, while on a quarterly basis, production expressed in current dollars increased 2.1%. Additionally, exports of aircraft engines, aircraft parts and other aerospace equipment rose 2.5% in September.
After two consecutive monthly declines, sales of primary metals increased 2.9% to $5.6 billion in September, on higher volumes as the sales in real terms increased 4.2%. Higher sales in non-ferrous metal (except aluminum) production and processing (+22.8%) contributed the most to the monthly increase, as the major manufacturers in this industry ramped up production after unplanned interruptions that occurred in July 2022. Prices for ferrous (+0.3%) and non-ferrous (-0.2%) metal products changed slightly from August to September, while exports of basic and semi-finished products of non-ferrous metals and non-ferrous metal alloys (except aluminum) were up 22.9%. In September, sales on a yearly basis were up 6.0%, but on a quarterly basis were down 11.4%—the first quarterly decline since the second quarter of 2020.
Another industry that contributed to the monthly growth in the manufacturing sector in September was machinery (+3.6%).