Manufacturers start the year with lower sales numbers
Published by Steve Coleman on March 16, 2012
Lower sales in the aerospace industry are partly to blame for grounding Canadian manufacturing sales in January.
Sales figures for the month hit an air pocket in January that resulted in a 0.9 per cent decrease in sales.
Statistics Canada says 11 of 21 industries representing roughly 44 per cent of Canadian manufacturing sales reported lower numbers for the month. Durable goods sales dipped 2.4 per cent, while non-durable goods had a 0.6 per cent increase.
Production in the aerospace product and parts industry plummeted 34 per cent to $913 million in January, the third decrease in four months.
Manufacturing sales in the primary metal industry were 3.5 per cent ($4.1 billion) lower, despite the 1.8 price increase reported by the Industrial Product Price Index. Alumina and aluminum production and processing as well as non-ferrous metal production and processing were the main culprits.
Despite the slip, sales were still 4.9 per cent higher than they were in January 2011.
Machinery manufacturers reported a 4.5 per cent decline in sales to $3 billion, the second-straight decline.
While the numbers weren't great for other parts of Canada's manufacturing sector, things were on cruise control from the vehicle industry - both assembly and parts. The 2.6 per cent increase pushed the numbers to $4.5 billion and helped the overall numbers for the industry grow 37.4 per cent since June 2011.
Vehicle makers reported the highest sales in January 2012 since November 2007.
More parts were sold for all of the vehicles on the road, too. The parts industry says sales were up 6.2 per cent in January to $2.1 billion, the fifth-straight month more parts have found new owners.
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