Despite expectations of an economic slowdown, Canadian manufacturing sales started 2023 showing growth. PHOTO courtesy BLM.
Manufacturing sales rose 4.1% to $73.9 billion in January, with increases in 16 of 21 industries, Statistics Canada records indicate.
Sales in constant dollars were up 3.8% in January, indicating that higher volumes played a significant role in the sales gain on a current dollar basis. The Industrial Product Price Index edged up 0.4% in January.
Sales of motor vehicles increased for the third consecutive month, up 13.4% to $4.8 billion in January 2023, the highest level since July 2020. Meanwhile, sales of motor vehicle parts, which have been increasing for four consecutive months, were up 2.7% to $3.0 billion in January, the second highest level on record. Exports of motor vehicles and parts increased 8.2%. Production increases at several Canadian assembly plants came after downtime associated with end-of-year holidays. The motor vehicle industry continues to experience some supply chain challenges and shipping capacity constraints. Year over year, however, sales of motor vehicles increased an incredible 63.5% in January 2023.
It wasn’t all good news in January.
Production in the aerospace product and parts industry declined 11.2% to $1.6 billion in January following strong gains in December, which reflected the trends generally observed at the end of the quarter in this industry. Exports for aircraft, aircraft engines and aircraft parts grew 5.6% in January. Despite the monthly decline, production grew 16.7% year over year in January.