Canadian Factory Shipments Increased 0.6% in June on ChemicalsGreg Quinn
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.