Canadian manufacturing sales decline in February

Canadian manufacturing sales declined 3.6 per cent to $71.5 billion in February, following a 4.5 per cent increase in January, reported Statistics Canada on Friday.

The decreases were observed in 12 of 21 industries, led by the petroleum and coal product (-14.9 per cent), motor vehicle (-12.3 per cent) and primary metal (-4.2 per. ent) industries. Conversely, the machinery (+3.0 per cent) and electrical equipment, appliance and component (+6.0 per cent) industries posted the largest increases. Year over year, total sales were up 3.8 per cent in February, said the federal agency.

“The monthly decline resulted from lower volumes and prices as sales in real terms decreased 2.4 per cent in February and the Industrial Product Price Index edged down 0.8 per cent,” it said.

“Following a strong growth in January, sales of petroleum and coal products fell 14.9 per cent to $8.8 billion in February, marking the third-largest monthly decline in dollar terms on record. Sales volumes were down 8.3 per cent. Prices (-6.4 per cent) and exports (-12.8 per cent) of refined petroleum energy products (including liquid biofuels) fell considerably month over month. Maintenance turnaround as well as lower demand for heating fuel likely due to mild weather in most of Europe and the United States could be partly responsible for the monthly declines. Year over year, sales edged down 0.8 per cent in February,” said StatsCan.

It said manufacturing sales decreased in nine provinces in February, primarily driven by lower sales in Alberta, Ontario and Quebec. Prince Edward Island was the only province where sales were unchanged.

“In Alberta, sales declined 9.6 per cent to $8.8 billion in February, after a prominent growth in January. The petroleum and coal product industry (-27.3 per cent) and to a lesser extent, the chemical industry (-8.3 per cent) drove the sales down, whereas the machinery (+12.5 per cent) and fabricated metal (+11.6 per cent) industries led the increase. Despite a monthly decrease, total sales were up 2.5 per cent in February on a yearly basis.

“In Ontario, sales were down 2.6 per cent to $31.8 billion in February, mainly on lower sales of motor vehicles (-12.4 per cent), petroleum and coal products (-4.2 per cent) and primary metals (-4.7 per cent). Partially offsetting the decline was higher sales in the electrical equipment, appliance and component industry (+14.3 per cent). Compared with the same month in 2022, total sales increased 7.7 per cent in February.

“Sales in Quebec decreased 1.6 per cent to $17.7 billion in February, as lower sales in the transportation (-8.9 per cent) and petroleum and coal product industries were partially offset by higher sales in the chemical (+12.8 per cent) and machinery (+8.4 per cent) industries. On a yearly basis, total sales were up 1.3 per cent in February.”

In Prince Edward Island, sales held steady at $274.0 million in February, as increases in the durable goods industries (+10.5%) were offset by decreases in the non-durable goods industries (-4.3%).

The report said total inventory levels rose 0.9 per cent to $122.3 billion in February, marking a new record high, with increases in finished products (+1.7 per cent) and goods in process (+1.7 per cent) and little change in raw materials (-0.1 per cent). The petroleum and coal product (+8.8 per cent), aerospace product and parts (+5.4 per cent) and chemical (+2.3 per cent) industries posted the largest gains, while the fabricated metal (-2.8 per cent), wood product (-3.0 per cent) and primary metal (-0.9 per cent) industries posted the largest declines.

(Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald, covering sports, crime, politics, health, faith, city and breaking news, and business. He works as well as a freelance writer for several national publications and as a consultant in communications and media relations/training. Mario was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list)