Canada Nov Mfg Sales +3.4%, Record High Far Above Expectations>

By Courtney Tower

     OTTAWA (MNI) - Manufacturing sales soared in November, rising 3.4% 

from October's 0.4% decline, reaching a record C$55.5 billion on gains 

over 81% of the manufacturing sector, Statistics Canada reported Friday. 

     Sales resumed increasing after the October decline, which had 

followed two consecutive months of gains, and far exceeded analyst 

expectations of a 2.0% increase for the month. 

     With the effects of prices removed, manufacturing sales volumes 

rose 2.5% in November. 

                    --HIGHER PRICES

     Higher prices were the main factor in increased sales of petroleum 

and coal products, up for the fifth consecutive month, by 6.1% to C$6.0 

billion. Taking away the effect of price changes, sales volumes in this 

industry decreased 0.3% in November. 

     Apart from petroleum and coal, other chief industries contributing 

to the manufacturing sales increase were transportation equipment  

(+9.1%), after two straight monthly decreases, and chemical industries 

(+5.9%) after declining 2.7% in October. 

     There also were increases noted in food (+2.1%), fabricated metal 

product (+3.0%) and paper (+2.8%). There were increases in 12 of the 21 

industries covered, but they represented 81% of the manufacturing 

sector. 

     For transportation equipment, most of the November increase was 

attributable to higher motor vehicle assembly sales (+14.2%) and motor 

vehicle parts (+11.3%), following plant shutdowns the previous month. 

Sales volumes were up 14.7% for motor vehicles and up 10.9% for parts. 

     "Higher sales in current dollars were partially offset by 

decreases in the computer and electronic product (-2.5%) and machinery 

(-0.6%) industries," Statistics Canada said. 

               --INVENTORIES UP

     Inventory levels increased for the second straight month, up 0.9%. 

They rose in 12 of the 21 industries, led by transportation equipment 

(+1.6%) and petroleum and coal products (+4.4%). 

     The inventory to sales ratio fell from 1.39 in October to 1.36 in 

November, with the sales increase being larger than the inventories 

increase. 

     Unfilled orders declined 0.9% on lower unfilled orders for 

aerospace products and parts and for fabricated metals. These declines 

were partially offset by increases in unfilled orders in the electrical 

equipment, appliances and components industry, and in the paper 

industry. 

     New orders fell 1.8% following a 5.2% gain in October. Most 

important here were lower new orders for aerospace products and parts. 

There were higher new orders  in the motor vehicle industry and for 

petroleum and coal products. 

     Sales gains were concentrated in the province of Ontario, but there 

was only one decline among the 10 provinces, in Manitoba. 

     --MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

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