- CIBC World Markets
Canada's factory sales declined far more than expected in February amid a sharp decrease in shipments of motor vehicles and petroleum and coal products. The value of factory sales dropped 3.3% to 51.19 billion Canadian dollars in February from January, according to Statistics Canada. The fall reversed some of the gains over the previous three months and appeared to be steeper than the 1.5% drop economists had expected. Sales slipped in 16 of the 21 industries Statistics Canada tracks, accounting for nearly three-quarters of the manufacturing sector. Motor-vehicle sales plunged 10.5%, the first decline after four consecutive months of increases. Excluding auto-sector sales, manufacturing shipments declined 2.2% in the month. In volume terms, February factory sales decreased 2.0% compared with the previous month. The sharper-than-expected decrease could spark concerns for economists who have been calling for the non-resource side of the economy, including manufacturing, to lead Canada's economic growth in light of falling global commodity prices.
Separately, Canadian home prices and sales rose in March, showing the country's housing market boom still had momentum. The housing market, a pillar of economic strength in the years since the financial crisis, was more positive, with existing-home sales up 1.5% in March.
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