Canada manufacturing sales for January 1.7% versus 2.0% estimate

• Prior month 0.5% revised from 0.3%
• Manufacturing sales rose 1.7% versus 2.0% estimate.
• Wholesale trade rose 1.2% versus 1.8% estimate. The prior month was revised higher to 0.3% from -0.2% previously reported.
• Capacity utilization rate (not seasonally adjusted) for the total manufacturing sector increased from 75.9% in December to 79.6% in January

Details of the report:

• Motor vehicle industry sales increased 11.1%.
• Petroleum and coal product sales grew 4.7%.
• Chemical product sales fell 7.4% to $5.0 billion, the largest decline.
• Year-over-year total manufacturing sales rose 3.0% in January.

Looking at the different industries:

Sales increased in eight provinces, with Ontario and Alberta leading the gains, while Newfoundland and Labrador saw the biggest decline.

Ontario sales rose 1.7% to $31.1 billion, driven by motor vehicles (+12.6%) and motor vehicle parts (+6.1%).

• Motor vehicle sales reached the highest level since November 2023.
• Year-over-year: Motor vehicle sales up 0.8%, motor vehicle parts up 0.2%.

Alberta sales increased 2.9% to $9.0 billion, the highest since September 2023.

• Growth driven by petroleum and coal (+4.9%) and food (+2.8%), partially offset by a 5.0% decline in chemical products.
• Year-over-year: Sales up 8.2%.

Newfoundland and Labrador sales fell 26.9% to $329 million, due to a 38.1% drop in non-durable goods.

• Year-over-year: Sales still 11.7% higher in January.

Looking at inventories

• Total inventories increased 1.2% to $121.2 billion in January.
• Raw material inventories rose 2.1%, and finished product inventories grew 1.6%.
• Goods in process inventories declined 0.6%.
• Largest inventory increases:
  • Miscellaneous products +29.1%
  • Aerospace products and parts +5.3%
  • Food +2.5%
• Largest inventory decline: Machinery subsector -2.1%.
• Inventory-to-sales ratio decreased slightly from 1.67 in December to 1.66 in January.

This article was written by Greg Michalowski at www.forexlive.com.