Canada’s manufacturing sales rise sequentially in September

Canada’s manufacturing sales rose on a sequential basis in September. Sales were up 0.5 percent, as compared with market expectations for a decline of 0.5 percent. Volumes also rose in the month, up 0.7 percent month-on-month, while prices dropped slightly.

Sales were driven by petroleum and coal product sales that rose 10.3 percent, largely a reflection of solid volume growth, and mark the third straight monthly advance. Machinery and paper industries also saw gains, with volumes outpacing nominal performance.

Transportation equipment industry sales dropped 0.7 percent sequentially, owing to declines in the motor vehicle and motor vehicle parts industries; the decline in volumes was a bit less pronounced. Quebec saw a rise of 1.7 percent in the month, as petroleum and coal manufacturing and the aerospace industry aided in stimulating sales to the highest level on record. Across the remaining provinces, the performance was usually positive with the exception of Nova Scotia, Alberta and Ontario.

Meanwhile, inventory levels dropped for the fourth straight month, helping in pushing the inventory-to-sales ratio slightly down to 1.36.

In all, the report released today continues to be in line with the view that after four straight quarters to growth well in excess of trend the Canadian economy has decelerated to a more sustainable rate of about 2 percent in the third quarter, stated TD Economics in a research report.

At 17:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at -24.41, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at 8.43844. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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