Canadian factory sales rose faster than economists predicted in June as delayed planting of crops boosted demand for chemicals. Excluding that industry, sales declined.
Sales climbed 0.6 percent to C$52 billion ($47.7 billion), the fifth gain in six months, Statistics Canada said today in Ottawa. Economists forecast a 0.4 percent increase according to the median of a Bloomberg survey with 15 responses.
Manufacturing sales have gained 6.9 percent over the last 12 months to approach the peak of C$53.2 billion set in July 2008 before the last recession took hold. Bank of Canada Governor Stephen Poloz has said a shift to exports and business investment from indebted consumers is key to erasing slack in the world’s 11th largest economy.
Chemical sales rose 8.6 percent to C$4.21 billion in June on gains in pesticides, fertilizer and other agricultural products. Farm purchases that normally take place in May were delayed to June because of a cold spring, Statistics Canada said.
Sales excluding chemicals fell 0.1 percent in June, with motor vehicles dropping 8.6 percent to C$4.53 billion.
Excluding price changes, a better indicator of the industry’s contribution to economic growth, factory sales rose 0.2 percent.
New orders rose 0.6 percent to C$51.7 billion, while unfilled orders declined by 0.3 percent to C$89.1 billion, the third decline in four months.
Inventories rose 0.5 percent to C$72.2 billion in June, with the ratio of factory stockpiles to sales unchanged from May at 1.39.
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