Canadian factory shipments continued to show positive growth in May, with a particular boost coming from chemical products and motor vehicles. According to Statistics Canada, manufacturing sales rose by 1.2% from the previous month, reaching a seasonally adjusted 72.87 billion Canadian dollars, equivalent to roughly $55.55 billion.
This surge in sales outperformed the agency’s initial estimate of a 0.8% rise. Additionally, manufacturing sales on a price-adjusted basis increased by 2.2% to C$58.29 billion in May, indicating a higher volume of goods sold compared to the previous month.
Notably, chemical product sales experienced a significant uptick of 4.8% during the month. This increase was primarily driven by higher sales of pesticide, fertilizer, and other agricultural chemical products in Alberta, as well as pharmaceutical and medicine products in Ontario.
Excluding motor vehicles, parts, and accessories, manufacturing sales still saw a notable increase of 0.7% compared to the previous month. In terms of motor vehicle sales, there was a substantial rebound of 4.8% in May after a decline of 3.6% in the previous month. Car manufacturers in Ontario were the primary contributors to this growth.
However, there was a decline of 6.9% in sales of primary metals during May, mainly due to lower volume. Additionally, inventory levels held by factories saw a decrease of 0.6%, primarily driven by lower inventories in 11 out of 21 manufacturing industries. This decline was particularly notable in food products, petroleum and coal products, and motor vehicle parts.
Unfilled orders also experienced a dip of 1.5% compared to the previous month, reaching the lowest level since May 2022. Furthermore, new orders saw a decline of 1.3% compared to the previous month.
Overall, May’s manufacturing sales data showcases positive growth in the Canadian factory sector, with particular increases in chemical products and motor vehicle sales.
