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Manufacturing sales number pass pre-recession high

Published by Brad Fougere on September 16, 2014

A surge in motor vehicle production helped lift manufacturing sales to a new record high in July. Manufacturing sales rose 2.5 per cent that month, reaching $53.7 billion. With that increase, overall manufacturing activity in Canada finally moved past its pre-recession high from six years ago.

July’s increase marks the continuation of a trend through 2014 that has seen a remarkable recovery in manufacturing activity in the country. Sales have risen for seven consecutive months and even if there is no further increase in manufacturing output for the rest of the year, the sector will still grow by 6.5% compared to last year.  

Much of the growth in manufacturing in July came in the motor vehicles sector. Production of vehicles and parts rose by 9.3 per cent in July to reach $7.8 billion – its highest monthly sales level since November 2007. The aerospace and computer and electronics sectors also performed well in July, posting gains of 12.2 per cent and 5.6 per cent, respectively. Offsetting those gains to some degree were small monthly decreases in production of machinery, chemicals and petroleum products.

Not only was July an excellent month for manufacturing in Canada, but forward-looking indicators point to future gains as well. New orders for manufactured goods jumped by 4.2 per cent in July, reaching $54.2 million. With the exception of a one-month spike in February when a huge new order of aerospace vehicles came in, this was the single highest level of new orders received by Canadian manufacturers on record.

At the provincial level, Manitoba posted by far the largest percentage increase in manufacturing output in July. Total sales increased by 15.4 per cent on the back of a spike in transportation equipment manufacturing. However, given its large size relative to other provinces, it was Ontario that drove most of the national gains in July. Total manufacturing sales across Canada grew by $1.3 billion in July, of which $1.0 billion came directly from Ontario producers. Ontario manufacturers enjoyed their best month since December 2006.

Found in: Stats Canada

National Office

Alberta British Columbia
Manitoba New Brunswick
Newfoundland & Labrador Nova Scotia
Ontario Québec
Prince Edward Island Saskatchewan