Car Parts Push Canada Factory Sales to Massive Forecast BeatErik Hertzberg
Production at Canada’s factories is beginning to hum.
Manufacturing sales rose 2.3 percent in December from a month earlier, Statistics Canada reported Wednesday, versus the median 0.3 percent forecast of economists in a Bloomberg survey. The monthly increase was more than double the highest forecast of 1 percent.
Transportation equipment, a category that includes motor vehicles and parts, registered a 7.4 percent increase. Petroleum and coal products surged 11.6 percent on the month to the highest level since July 2015.
Factory sales volumes rose 2.3 percent, the largest gain since March 2015. Non-durable goods climbed 2.1 percent on the month, while durables rose 2.4 percent.
The gains were not widespread, with receipts rising in only 8 of 21 industries -- about 41 percent of the total sector.
Total factory sales in Canada are up 4.1 percent from a year earlier, however durable goods are up just 0.7 percent from a year earlier. Sales in the transportation equipment category have grown just 0.4 percent in the last year.