Canada manufacturing sales for January 1.7% versus 2.0% estimate

Prior month 0.5% revised from 0.3%Manufacturing sales rose 1.7% versus 2.0% estimate.Wholesale trade rose 1.2% versus 1.8% estimate. The prior month was revised higher to 0.3% from -0.2% previously reported.Capacity utilization rate (not seasonally adjusted) for the total manufacturing sector increased from 75.9% in December to 79.6% in JanuaryDetails of the report:Motor vehicle industry sales increased 11.1%. Petroleum and coal product sales grew 4.7%.Chemical product sales fell 7.4% to $5.0 billion, the largest decline.Year-over-year total manufacturing sales rose 3.0% in January.Looking at the different industries:Sales increased in eight provinces, with Ontario and Alberta leading the gains, while Newfoundland and Labrador saw the biggest decline.Ontario sales rose 1.7% to $31.1 billion, driven by motor vehicles (+12.6%) and motor vehicle parts (+6.1%). Motor vehicle sales reached the highest level since November 2023.Year-over-year: Motor vehicle sales up 0.8%, motor vehicle parts up 0.2%.Alberta sales increased 2.9% to $9.0 billion, the highest since September 2023. Growth driven by petroleum and coal (+4.9%) and food (+2.8%), partially offset by a 5.0% decline in chemical products.Year-over-year: Sales up 8.2%.Newfoundland and Labrador sales fell 26.9% to $329 million, due to a 38.1% drop in non-durable goods. Year-over-year: Sales still 11.7% higher in January. Looking at inventoriesTotal inventories increased 1.2% to $121.2 billion in January.Raw material inventories rose 2.1%, and finished product inventories grew 1.6%.Goods in process inventories declined 0.6%.Largest inventory increases: Miscellaneous products +29.1%Aerospace products and parts +5.3%Food +2.5%Largest inventory decline: Machinery subsector -2.1%.Inventory-to-sales ratio decreased slightly from 1.67 in December to 1.66 in January.This is a January report and although lower than expectations, the gain is the 2nd highest going back to 2023. The data may be influenced by what is happening below the border in the US and will likely continuing going forward companies anticipate the tariffs ahead. This article was written by Greg Michalowski at www.forexlive.com.

Mar 14, 2025 - 19:05
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Canada manufacturing sales for January 1.7% versus 2.0% estimate
  • Prior month 0.5% revised from 0.3%
  • Manufacturing sales rose 1.7% versus 2.0% estimate.
  • Wholesale trade rose 1.2% versus 1.8% estimate. The prior month was revised higher to 0.3% from -0.2% previously reported.
  • Capacity utilization rate (not seasonally adjusted) for the total manufacturing sector increased from 75.9% in December to 79.6% in January

Details of the report:

  • Motor vehicle industry sales increased 11.1%.
  • Petroleum and coal product sales grew 4.7%.
  • Chemical product sales fell 7.4% to $5.0 billion, the largest decline.
  • Year-over-year total manufacturing sales rose 3.0% in January.

Looking at the different industries:

Sales increased in eight provinces, with Ontario and Alberta leading the gains, while Newfoundland and Labrador saw the biggest decline.

Ontario sales rose 1.7% to $31.1 billion, driven by motor vehicles (+12.6%) and motor vehicle parts (+6.1%).

  • Motor vehicle sales reached the highest level since November 2023.
  • Year-over-year: Motor vehicle sales up 0.8%, motor vehicle parts up 0.2%.

Alberta sales increased 2.9% to $9.0 billion, the highest since September 2023.

  • Growth driven by petroleum and coal (+4.9%) and food (+2.8%), partially offset by a 5.0% decline in chemical products.
  • Year-over-year: Sales up 8.2%.

Newfoundland and Labrador sales fell 26.9% to $329 million, due to a 38.1% drop in non-durable goods.

  • Year-over-year: Sales still 11.7% higher in January.

Looking at inventories

  • Total inventories increased 1.2% to $121.2 billion in January.
  • Raw material inventories rose 2.1%, and finished product inventories grew 1.6%.
  • Goods in process inventories declined 0.6%.
  • Largest inventory increases:
    • Miscellaneous products +29.1%
    • Aerospace products and parts +5.3%
    • Food +2.5%
  • Largest inventory decline: Machinery subsector -2.1%.
  • Inventory-to-sales ratio decreased slightly from 1.67 in December to 1.66 in January.

This is a January report and although lower than expectations, the gain is the 2nd highest going back to 2023. The data may be influenced by what is happening below the border in the US and will likely continuing going forward companies anticipate the tariffs ahead. This article was written by Greg Michalowski at www.forexlive.com.

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