- Dr Harm Bandholz, chief US economist at UniCredit Research
Manufacturing sales in Canada dropped for the third month in a row in October as the global oil glut continues to undermine industry production and revenue. According to Statistics Canada, manufacturing sales declined 1.1% to $50.4 billion in the reported month, down from $51.1 billion a month earlier. Decrease in sales was broad based, as 13 of 21 industries were affected. Sales fell the most in the aerospace and parts industry, plummeting 10.3% to $1.6 billion, while in the petroleum and coal product industry sales plunged 5.7% to 4.5%, partly due to maintenance work at some refineries that started in September. Motor vehicles were the only bright spot in the October report, with sales increasing 4.9% to $5.3 billion, marking the fifth increase in six months. New orders declined 1.4% in October, the third monthly decline in a row. The data downgraded bets for a positive October GDP number. Despite the weak manufacturing production report, the government on December 4 reported that manufacturing employment increased in November by 17,000.
Statistics Canada reported earlier in the month that the nation's economy expanded at an annualized rate of 2.3% in the third quarter after contracting in the first half of the year. The Bank of Canada predicts the economy to grow at a slower 1.5% pace in the fourth quarter.
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