Canada’s manufacturing sales growth likely to have grown sequentially in April

Canada’s manufacturing sales growth is likely to have risen on a sequential basis in April. According to a TD Economics research report, the manufacturing sales growth is likely to have accelerated to 1.2 percent month-on-month, building on a solid performance in the earlier month. The growth is likely to be fairly balanced between durable and nondurable goods, with nondurable goods advancing from increasing gasoline prices ahead of the April OPEC meeting.

Manufacturing of durable goods is likely to have rebounded in motor vehicles that saw a surge in exports. In spite of the deceleration in U.S. auto sales, demand for lightweight trucks continue to be well anchored that should continue to underpin Canada’s production.

Elsewhere, there is a scope for a comparatively wide growth in manufacturing activity based on the strength of weak data, stated TD Economics. Real manufacturing sales are expected to underperform the nominal print and increase by less than one percent.