According to Statistics Canada, following a 3.6 percent decline in February, Canadian manufacturing sales increased 0.7 percent to $72.3 billion in March, led by the motor vehicle (+8.6 percent), aerospace product and parts (+18.8 percent), and primary metal (+4.6 percent) industries. Sales in the petroleum and coal product industry (-2.0 percent) declined the most. On a quarterly basis, sales were up 1.4 percent in the first quarter of 2023, mostly due to higher sales in the transportation equipment industry.
Total inventory levels increased 0.5 percent to $124.5 billion in March, on higher goods in process (+1.5 percent) and raw materials (+0.7 percent). Many of the inventory gains were attributable to high inventories in the computer and electronic product (+8.6 percent) and primary metal (+1.5 percent) industries.
The inventory-to-sales ratio decreased from 1.73 in February to 1.72 in March. This ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.
Total value of unfilled orders declined 2.2 percent to $106.2 billion in March, primarily driven by lower unfilled orders in the aerospace product and parts (-2.3 percent) and machinery (-3.6 percent) industries.
The capacity utilization rate (not seasonally adjusted) for the manufacturing sector rose from 77.5 percent in February to 81.3 percent in March, on higher production. The growth in capacity utilization rates was noticeable in the transportation equipment (+8.5 percentage points) and primary metal (+3.5 percentage points) industries.