MNI DATA IMPACT: Canada Factory Sales -0.2% on Energy, Autos>

By Greg Quinn and Anahita Alinejad

     OTTAWA (MNI) - Canadian factory sales fell 0.2% in September, the 

third decline in four months, led by energy and auto parts production 

stifled by the UAW union strike.

     The decline was smaller than the 0.5% MNI median, and much less 

than drops of more than 1% in June and July. Still, the volume of sales 

that is a better fit to GDP figures declined by 0.7% in September, a 

Statistics Canada report Tuesday showed. 

     Petroleum and coal sales fell 1.9%, the fourth straight decline. 

Motor vehicle parts declined 4.3% in September, the most in 10 months, 

as some plants were disrupted by the United Auto Workers labor dispute. 

That could later hurt the strength of the motor vehicles segment that 

climbed 2.9% in September. 

     Sales declined in 10 of 21 industries tracked by StatsCan 

representing 62% of the total, including food, aerospace and 

electronics. The losses were stemmed by a 5.5% gain in machinery. 

     September's decline means sales fell 1.3% in the third quarter, in 

line with an economy slowing after a burst of energy production and 

consumer spending. The Bank of Canada has held interest rates this year 

because of a resilient economy, a view policy makers say is being tested 

by global trade tensions. 

     Factories are slowly improving bloated inventories, cutting them by 

0.8% in September. The ratio of inventories to sales slipped a notch for 

a second month to 1.53, after reaching the highest since 2009 in July at 

1.55. High inventory levels can signal manufacturers are struggling to 

sell their goods. 

--MNI Ottawa Bureau +1-613-314-9647; greg.quinn@marketnews.com  

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