According to Statistics Canada, Canadian manufacturing sales edged up 0.4 percent to $50.9 billion in March, the sixth advance in seven months. The rise mostly reflected higher sales in the food, machinery, and plastics and rubber products industries. However, these increases were largely offset by declines in the paper, and petroleum and coal products industries.
Sales were up in 11 of 21 industries, representing approximately two-thirds of the manufacturing sector. Both durable and non-durable goods sales increased 0.4 percent.
Machinery sales increased 3.3 percent to $3.1 billion in March. In the plastics and rubber products industry, sales advanced 2.7 percent to $2.1 billion.
Offsetting these increases were a 3.8 percent decrease in the paper products industry and a 0.8 percent decline in the petroleum and coal product industry. Some respondents in the paper products industry reported that the decrease in sales was the result of a strike at the Port Metro Vancouver.
Inventories edged up 0.2 percent to $71.6 billion, a third consecutive increase. Petroleum and coal products led the advance in March. The paper, wood and food industries also contributed to the rise. Lower inventories in the aerospace product and parts industry partially offset the gains.
In the petroleum and coal products industry, inventories rose 4.5 percent, reflecting higher levels of raw materials (+19.0 percent). The increase was partly related to a rise in the price of conventional crude oil, up 12.6 percent from December according to the Raw Materials Price Index.
