- Douglas Porter, chief economist at Bank of Montreal
Canada's manufacturing sales rebounded in September, recording the eighth gain in nine months, and following the negatively revised 3.5% drop in the preceding month. Manufacturing sales rose 2.1% to C$53.0 billion, Statistics Canada reported, overshooting economists' expectations' for a 1% rise. Sales surged in the transportation equipment industry, up 9.5%, rebounding from last month's setback. The aerospace industry was the main driver of the higher sales, rising 22%, the most in two years. The depreciation of the Canadian Dollar against its US counterpart played a role in the rise, as majority of the data is reported in US Dollars, Statistics Canada noted. Activity in the auto industry also surged, as Canadian plants resumed production after a partial shutdown in August, increasing sales 4.8% in September. Other gains were reported in the primary metal and food industries, while petroleum and coal products recorded drops, as refineries remained partially shutdown for longer than usual during the month. Excluding autos and parts, sales rose 1.6% to C$46 billion in the reported month. On an annual basis, manufacturing sales soared 7.3%.
Meanwhile, the Bank of Canada estimated that Canada's GDP growth will average 2.5% over the next year and then slowed to 2% by the end of 2016. The economy is now expected to reach full capacity by the second half of 2016, slightly later than previously estimated.
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