Canada’s manufacturing sales likely grew strongly in March, says TD Economics

Canadian manufacturing sales are likely to have come in strong in the first quarter of 2017. According to a TD Economics research report, manufacturing sales are expected to have grown 2 percent in March. A wide increase in export activity and positive signals from the labor market support this view.

The rebound in manufacturing is likely to reflect the breadth of March export gains, though there is a threat of energy products underperforming because of the Syncrude upgrader fires that are likely to have just a modest effect on production. Moreover, there is also risk of underperformance in motor vehicle manufacturing because of the flat growth in U.S. auto sales, though this might have been shown in a pullback last month, stated TD Economics.

Factory prices recorded a robust growth in March that should give additional support to the national print. In spite of this, real manufacturing sales for the first quarter continue to be on track for an annualized rise in excess of 10 percent, added TD Economics.