According to Statistics Canada, Canadian manufacturing sales declined 2.8 percent to $71.0 billion in October, on lower sales in 12 of 21 subsectors, led by the petroleum and coal product (-10.3 percent), machinery (-6.6 percent) and computer and electronic product (-15.0 percent) subsectors. Partially offsetting the declines were higher production of aerospace products and parts (+6.9 percent). Year over year, total sales decreased 1.5 percent in October.
Total inventories increased 0.7 percent to $123.8 billion in October, the second consecutive monthly gain, on higher raw material (+0.8 percent), finished product (+0.8 percent) and goods in process (+0.2 percent) inventories. Inventories rose in 13 of 21 subsectors led by the transportation equipment (+1.9 percent), beverage and tobacco (+6.3 percent) and computer and electronic product (+4.9 percent) subsectors. The gains were partially offset by a 2.1 percent decline in inventories of machinery.
The inventory-to-sales ratio rose from 1.69 in September to 1.75 in October, the highest since June 2020. 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 edged up 0.2 percent to $102.4 billion in October, primarily on an 1.8 percent increase in unfilled orders of aerospace products and parts. On a yearly basis, total unfilled orders were down 7.2 percent in October.
The capacity utilization rate (not seasonally adjusted) for the total manufacturing sector decreased from 78.6 percent in September to 77.4 percent in October, on lower production. The declines in the capacity utilization rates were noticeable in the petroleum and coal (-7.9 percentage points), food (-1.3 percentage points), and beverage and tobacco (-6.5 percentage points) subsectors. The capacity utilization rate increased 2.4 percentage points in the wood product subsector in October.