- Andrew Leach, an economist at the University of Alberta
Canada's manufacturing sales recorded another decline in March after falling the most in more than seven years in February. According to Statistics Canada, manufacturing sales slipped 0.9% to C$50 billion in March amid weakness in the transportation equipment and primary metals industries. Nevertheless, the decline was less steep than the 1.8% decrease predicted by analysts. Also, Statscan revised February's fall to 4.0%, the largest month-on-month decrease in almost seven years, from an initial 3.3%. Sales fell in 16 of 21 industries, accounting for 88.3% of Canadian manufacturing. Overall inventories slipped by 0.4% to their lowest level since January, while new orders fell 2.2%.
The Bank of Canada currently predicts growth of 2.8% during the first quarter, but warns that the boost is likely temporary, with much weaker rate of expansion estimated for the three months through June. Moreover, the forecast for the second quarter is likely to be further downgraded due to the economic impact of Alberta wildfires. Back in April, the BoC maintained its interest rate at 0.5%, after trimming it twice last year due to the negative effects of lower oil prices. The central bank's latest statement still sounded dovish, with sluggish global growth and uncertainty surrounding lower oil prices undermining the Canadian economy.
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