- Doug Porter, chief economist at BMO Capital Markets
Canada's June manufacturing rose the most in three months after a slew of weak data, supported by improved sales of chemical products and autos. However, the recovery appeared to be not large enough to ensure better-than-expected GDP for the reported month. Manufacturing sales increased 1.2% to C$50.8 billion in June, the most since March, following an upwardly revised advance of 0.2% the previous month, Statistics Canada reported. Meanwhile, volumes rose 0.5%. Despite a fairly strong figure, the data disappointed as economists projected a much stronger surge of 2.3%, relying on robust export data released earlier in August. When measured on the year-to-date basis, sales declined 1.5% from the same month last year.
Sales rose in 18 out of 21 industries, reflecting gains in 80% of the manufacturing sector. Chemical products were one of the main drivers in June, surging 5.4%.Additionally, the auto sector was a large component, with motor vehicles sales soaring 4.2% to mark the third advance in 2015. Year-to-date receipts were at their highest since 2007. In the meantime, inventories declined 0.5%, driven by machinery manufacturers, motor vehicle industry, and aerospace. Exports increased the most in eight-and-a-half years in June, advancing 6.3% on strong consumer goods, while imports declined 0.6%, leading to a C$476 million deficit – the ninth in a row.
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