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

Canadian manufacturing sales data for April is set to be released tomorrow. According to a TD Economics research report, the manufacturing sales are expected to have risen 1 percent sequentially in April, building on strength in the earlier two months. Non-durable goods are expected to have mainly driven the growth in the midst of a sharp rebound in gasoline prices, while soft exports of transportation equipment suggest a softer performance in durables.

The rise in real manufacturing sales is expected to be around half the nominal rise thanks to increased factory prices, though this is still suggestive of a healthy contribution to industry-level GDP for April.

“Looking ahead, Canada’s manufacturing sector is subject to elevated uncertainty following the implementation of steel and aluminum tariffs, which took effect on June 1st, though the strong hand-off from March should help to anchor Q2 exports”, added TD Economics.

At 21:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at -26.5698, while the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 148.692. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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