MNI DATA IMPACT: Canada Oct. Factory Sales -0.7%, Ex-Auto 0.0%>

By Greg Quinn and Anahita Alinejad

     OTTAWA (MNI) - Canadian factory sales declined in October as an 

auto workers strike curbed production, while excluding cars and parts 

they were little changed.

     Sales fell 0.7% on the month to C$57.1 billion, compared with the 

MNI median calling for a 0.1% increase. Excluding motor vehicles and 

parts, sales were unchanged, Statistics Canada said Tuesday from Ottawa. 

     The October sales decline was the fourth in five months, 

bringing the total over the past year down by 2.1%. While the monthly 

decline was led by drops of almost 5% in car and parts production, sales 

declined in 11 of 21 major categories including a 8.2% drop in metals.

     Manufacturing is one of the industries at greatest risk for damage 

from global trade disputes that slow economic growth and force companies 

to break up their supply chains. The Bank of Canada has said the 

economy's resilient domestic spending will be tested and trade remains a 

top risk. 

     Factory inventories remain bloated, rising a notch to 1.54 in 

October. That brings it closer to a July peak of 1.55 -- the highest 

since the last recession in 2009. 

     The UAW auto workers strike that hurt motor vehicle production 

ended in October, suggesting there could be a rebound in November sales. 

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

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