MNI 5 THINGS:Canadian Mfg Sales Beat Expecations;Autos Rebound>

--5 Things We Learned From the Canadian Monthly Manufacturing Survey

By Yali N'Diaye

     OTTAWA (MNI) - The following are the key points from the February 

data on the Canadian manufacturing sales released Tuesday by Statistics 

Canada: 

     - Sales recovered 1.9% in February, twice as much as market 

expectations, although the gain was tempered by a downward revision to 

January's estimate now at -1.3% versus -1.0% initially reported. Still, 

the performance was solid, as it was all related to higher volumes 

(+2.0%). In addition, gains were widespread across sectors and 

provinces, with 6 provinces recording higher sales, led by Ontario and 

Quebec, the manufacturing heart of the country. 

     - The monthly increase was led by durables (+3.4%), especially 

transportation equipment. After "atypical" plant shutdowns in January, 

autos recovered 8.9%. Sales excluding autos and parts were still up 

1.1%. They were up 0.9% excluding transportation equipment. 

     - Gains were widespread across 14 of 21 industries, representing 

72.2% of manufacturing trade. Non-durables were up 0.3%. On the 

downside, petroleum and coal contracted 2.1%, with volumes down 0.7%. 

Machinery was down for the second consecutive month (-1.6%), entirely on 

lower volumes, a negative for the Bank of Canada's hope for an 

investment increase as a key pillar of growth. It also contrasts with 

the latest BOC Business Outlook Survey, which showed uncertainty related 

to U.S. trade policies has not significantly affected investment plans 

so far. 

     --Forward-looking indicators remained positive in February, with 

unfilled orders up 3.0%, the largest gain since July 2015, following a 

1.0% gain in January. New orders rose 5.0% after increasing 1.0% as well 

the previous month. 

     - Inventories rose 1.3% to a record C$77.4 billion. The 

inventory-to-sales ratio edged down to 1.39 from 1.40. 

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

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