We are not suppose to get too excited about this . Most apologists say just a blip because guess what–next year the economy is to grow by all of 0.4%. Got that! Of course , same people wrong about this decline so where is their credibility? Never mind they just keep saying it and I suppose there are still people who believe them.
‘Monthly Survey of Manufacturing, October 2016
Manufacturing sales declined 0.8% to $51.0 billion in October, following two consecutive monthly gains. The largest decreases were in the primary metal, petroleum and coal product, and machinery industries.
Sales fell in 15 of 21 industries, representing 61% of the manufacturing sector. Sales of durable goods decreased 1.1%, while non-durable goods sales were down 0.4%.
Constant dollar sales declined 1.7% in October, reflecting a lower volume of manufactured goods sold. According to the Industrial Product Price Index, prices for the manufacturing sector rose 0.7% in October.
Primary metal and petroleum and coal post largest declines
Primary metal manufacturing sales were down 2.4% in October to $3.6 billion—the second consecutive monthly decline. The decrease was largely attributable to non-ferrous metal production, and iron and steel mills and ferro-alloy manufacturing.
Prices for primary non-ferrous metal products also contributed to the decrease, falling 1.9% in October, according to the Industrial Product Price Index.
Sales in the petroleum and coal product industry were down 1.7% in October to $4.3 billion, the second consecutive monthly decline. The decrease in October was entirely attributable to lower volumes of product sold, as prices for the industry rose 4.8% according to the Industrial Product Price Index. Maintenance and turnaround work at some facilities also lowered production.
Lower sales in the railroad rolling stock (-31.2%), machinery (-2.5%), food (-0.7%) and fabricated metal product (-2.3%) industries also contributed to the overall decrease in October.
These declines were partially offset by a 5.3% increase in the aerospace product and parts industry, partly reflecting changes in the value of the US dollar relative to the Canadian dollar. Sales and inventories in the aerospace industry are mainly reported in US dollars.
Sales of other transportation equipment (+21.6%), chemicals (+1.2%), paper (+1.0%) and clothing (+10.6%) also rose in October.
Sales down in seven provinces
Sales were down in seven provinces in October, with Ontario, Quebec and Alberta posting the largest declines.
Sales in Ontario were down 0.8% to $25.0 billion, following two consecutive monthly gains. The decline in October reflected lower sales in the transportation equipment (-0.7%), machinery (-4.2%) and beverage and tobacco (-6.9%) industries.
In Quebec, sales decreased 1.2% to $11.7 billion in October, following a 1.5% increase in September. Manufacturers of petroleum and coal products, primary metals and food products reported the largest declines.
Manufacturing sales in Alberta fell 2.0% to $5.2 billion in October, mainly the result of lower sales in the petroleum and coal product (-6.2%) and the fabricated metal product (-8.9%) industries.
The overall decline in October was partially offset by higher sales in Newfoundland and Labrador (+18.9%) and Manitoba (+2.1%). For both provinces, higher non-durable goods sales were largely responsible for the gains.
Inventories edge down
Inventory levels edged down 0.1% in October to $70.2 billion. Inventories were down in 12 of 21 industries, led by the aerospace product and parts (-4.2%) and wood product (-3.4%) industries. A 7.6% increase in petroleum and coal product inventories partly offset the declines
The inventory-to-sales ratio rose from 1.37 in September to 1.38 in October. The inventory-to-sales ratio measures the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.
Unfilled orders rise
Unfilled orders rose 0.8% to $89.4 billion in October, following three months of declines. The increase was attributable to higher unfilled orders in the transportation equipment, computer and electronic product, and primary metal industries.
Unfilled orders rise
New orders rose for the second consecutive month, up 0.7% to $51.7 billion in October as a result of gains in the aerospace product and parts and computer and electronic industries. The increase was partially offset by lower new orders in machinery and food industries.’