Canadian manufacturing sales rose 0.7% to $72.4 billion in August on higher sales in 9 of 21 subsectors, led by the petroleum and coal (+10.5%), food (+1.5%) and machinery (+2.4%) subsectors. This was the second consecutive monthly increase. Meanwhile, sales of fabricated metals (-3.5%) and miscellaneous (-9.4%) declined the most in August, as Statistics Canada reports.
The monthly increase was due mostly to higher prices as sales in real terms decreased in August (-0.7%). The Industrial Product Price Index rose 1.3%.
Impacts of the port strike on manufacturing activities
The impact of the port strike in British Columbia on the manufacturing sector was smaller in August compared with July. At the national level, 8.4% of manufacturing plants reported that their manufacturing activities were impacted by the strike in August, mainly through shortages of raw materials (5.0%) and transportation disruptions (3.7%).
Petroleum and coal subsector posts the largest increase
Sales of petroleum and coal products rose for the second consecutive month, up 10.5% to $8.4 billion in August, on higher volumes and prices. Sales in constant dollar terms increased 1.7% in August, while prices of refined petroleum energy product (including liquid biofuels) rose 10.6%. Concerns over continuing oil production cuts by the Organization of the Petroleum Exporting Countries and its partners (OPEC+) resulted in increased prices of petroleum products. Exports of refined petroleum energy products also saw a substantial growth, up 23.1% in August. Despite the monthly increase, sales of petroleum and coal products in current dollars were down 13.5% on a yearly basis in August.
Sales of food products rose 1.5% to $12.6 billion in August, the highest level on record. Excluding the seafood product preparation and packaging industry group, sales increased in all the food industry groups, led by bakeries and tortilla (+14.1%) and meat products (+5.2%). Both higher demand and prices of bakeries and tortilla products (+1.5%) and meat products (+1.8%) were responsible for the increases in sales. In constant dollar terms, sales of food increased 0.9% in August from the previous month, while year over year, sales in current dollar terms were up 4.6%.
Sales in the machinery subsector increased 2.4% to a record high, reaching $4.8 billion in August, mainly on higher sales of industrial machinery (+32.8%). Exports of industrial machinery, equipment and parts rose 1.2% accordingly. On a year-over-year basis, sales of machinery were up 15.1% in August.
Partially offsetting the monthly increases, sales of fabricated metal products declined 3.5% to $4.5 billion in August, following a 3.1% increase in July, with the August decline mainly driven by lower sales of other fabricated metal products as well as architectural and structural metals manufacturing. Despite the monthly decline, sales were 5.1% higher on a year-over-year basis in August.
Sales increase in seven provinces, led by Alberta and Manitoba
Manufacturing sales increased in seven provinces in August, led by Alberta (+6.0%) and Manitoba (+10.0%). Quebec (-1.8%) experienced the largest decrease.
In Alberta, sales rose for the second consecutive month, up 6.0% to $8.7 billion in August. The monthly increase was largely driven by higher sales of petroleum products (+16.4%), which also contributed significantly to higher total sales in Edmonton (+12.3%).
Sales in Manitoba rose 10.0% to $2.2 billion in August, following a 12.1% decline in July. Higher sales of chemical products, transportation equipment and food subsectors contributed the most to the gain. The transportation equipment and chemical subsectors were also mainly responsible for higher total sales in Winnipeg (+17.3%) in August.
Sales in Quebec fell 1.8% to $17.5 billion in August, on lower sales in 13 of 21 subsectors, led by the primary metal subsector (-11.0%). The decline in the subsector was partially attributable to lower prices of aluminum in August. Despite the monthly decline, total sales in Quebec were 3.0% higher on a yearly basis in August.
