According to Statistics Canada, manufacturing sales rose 0.8 percent to $50.2 billion in June, following a 1.0 percent decline in May. Higher sales of machinery and transportation equipment products were largely responsible for the gain. Nearly three-quarters of the increase in June was attributable to these two industries.
Overall, sales were up in 15 of 21 industries, representing 62 percent of the manufacturing sector. Durable goods rose 1.6 percent to $27.0 billion, while non-durable goods decreased 0.1 percent to $23.2 billion. Constant dollar sales increased 0.5 percent, indicating a higher volume of goods sold.
Sales in the machinery industry rose 5.8 percent to $2.7 billion, following five consecutive monthly declines. The gain in June was the largest since September 2015 and stemmed from higher sales in the commercial and service machinery, agricultural, construction and mining machinery, and industrial machinery industries.
In the transportation equipment industry, sales were up 1.4 percent to $10.7 billion in June, following a 2.5 percent decline in May. The increase in June was mainly due to higher sales in the motor vehicle parts and motor vehicle assembly industries.
Inventory levels fell 0.2 percent to $70.6 billion in June, the fifth consecutive monthly decline. Inventories decreased in 11 of 21 industries. In the petroleum and coal product industry, inventories rose 3.5 percent, reflecting higher levels of finished products (+14.0 percent).
Unfilled orders rose 1.6 percent to $90.4 billion, a third consecutive monthly increase. The advance reflected a gain in the aerospace product and parts industry, up 3.5 percent to $51.1 billion. Unfilled orders in the industry represented more than half of total orders. Unfilled orders were also up in the fabricated metal product, chemical and food industries.
New orders increased 1.3 percent to $51.7 billion, the third consecutive monthly gain. The rise was mainly the result of higher new orders in the aerospace product and parts, fabricated metal product and chemical industries.