According to Statistics Canada, manufacturing sales in Canada rose 1.0 percent to $50.4 billion in April, following two consecutive monthly declines. The increase in April reflected higher sales in the petroleum and coal product, transportation equipment, and primary metal industries.
Sales in the petroleum and coal product industry were up 8.3 percent to $4.1 billion in April, following a 13.4 percent increase in March. Higher petroleum prices contributed to the gain. Petroleum and coal product prices rose 2.5 percent in April, according to the Industrial Product Price Index.
Transportation equipment sales increased 2.1 percent to $11.0 billion, reflecting higher sales in most sub-industries. Production in the aerospace products and parts industry was up 6.3 percent to $1.7 billion. In this industry, there is generally a large gain in unadjusted production in March, followed by a subsequent decrease in April. Due to lower production in March this year, the decline in April was not as strong as usual, leading to a seasonally adjusted increase in production for the aerospace industry.
Sales of primary metals were up 3.9 percent to $3.7 billion in April. This was the industry's fourth sales increase in five months.
Inventories fell for the third consecutive month in April, decreasing 0.4 percent to $70.9 billion, the lowest level since December 2014. Inventories dropped in 15 of 21 industries. Transportation equipment recorded the largest decrease, with inventory levels down 1.2 percent. The decline was the result of lower inventories of aerospace products and parts (-1.4 percent), motor vehicles (-1.7 percent), and motor vehicle parts (-1.5 percent). These declines were partly offset by higher inventories of primary metals (+2.0 percent).
The inventory-to-sales ratio dropped from 1.43 in March to 1.41 in April. This ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.
Unfilled orders rose in April, following two consecutive monthly declines. This was the second increase in nine months. Unfilled orders were 9.4 percent lower than in the same month the previous year. The gain in April was due to higher unfilled orders of aerospace products and parts (+1.4 percent).
The machinery industry also posted an increase in April. Unfilled orders were up 3.2 percent, following four months of declines.
New orders increased 7.9 percent in April, reflecting a substantial increase in the aerospace product and parts industry. The machinery industry and the petroleum and coal products industry also posted higher new orders in April.