According to Statistics Canada, manufacturing sales decreased 1.7 percent to $71.5 billion in June, on widespread declines over 14 of 21 subsectors, led by the petroleum and coal product (-8.3 percent), chemical (-6.5 percent), and machinery (-5.5 percent) subsectors. Year-over-year, total sales decreased 1.4 percent in June.
Total inventory levels edged up 0.3 percent to $123.2 billion in June, on higher inventories in 9 of 21 subsectors, driven by higher inventories of aerospace product and parts (+3.3 percent) and chemicals (+2.5 percent). The gains were partially offset by lower inventories of primary metals (-1.9 percent) and machinery (-1.9 percent). On a year-over-year basis, total inventories rose 5.0 percent in June.
The inventory-to-sales ratio increased from 1.69 in May to 1.72 in June. This ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.
The total value of unfilled orders edged up 0.2 percent to $104.5 billion in June, primarily on higher unfilled orders of motor vehicles as well as electrical equipment, appliances, and components.
The capacity utilization rate (not seasonally adjusted) for the total manufacturing sector rose from 80.3 percent in May to 80.8 percent in June, mainly on a higher capacity utilization rate in the transportation equipment (+2.9 percentage points), non-metallic mineral product (+4.3 percentage points) and petroleum and coal product (+2.6 percentage points) subsectors.