- Statistics Canada
Canadian manufacturing sales dropped less than expected in February after rising for three straight months. Statistics Canada reported on Thursday that sales dropped 0.2% in the reported month, following January's downwardly revised gain of 0.1%. Meanwhile, market analysts anticipated a bigger fall of 0.4% in February. Sales declines in 10 out of 21 industries, representing 37% of the Canadian manufacturing sector. In volume terms, sales were up 0.1% in February. The largest contribution to the February decline was made by the motor vehicles assembly sector, where sales dropped 5.3%. The second largest fall was registered in the petroleum and coal products, where sales dropped 5.0% amid lower both prices and volumes. In the meantime, new orders advanced 0.8% due to higher demand in the transportation equipment, clothing and fabricated metal sectors. The February decline was unlikely to have a significant impact on analysts' expectations that the Canadian economy started the year with solid growth. On Wednesday, the Bank of Canada left its monetary policy unchanged but revised up its economic growth forecast for the quarter to 3.8%. Moreover, the Bank said that it would unlikely cut rates in the upcoming months.
© Dukascopy Bank SA