Canadian manufacturing sales likely to have fallen in November

Canadian manufacturing sales data for the month of November is set to be released tomorrow. According to a TD Economics research report, manufacturing sales are likely to have dropped 0.2 percent in November as a partial recovery in auto shipments proves insufficient to counter a wider fall in manufacturing activity.

Preliminary auto production indicated a modest recovery in November after the UAW strike led to inventory shortages throughout Canada, although the scheduled windiwn of a major plant has weighed on the rebound.

Meanwhile, fabricated metals are expected to have bounced back after their largest one-month fall since 2008, although exports and labor market data indicate towards a wide pullback in manufacturing shipments.

“Real manufacturing sales should perform in line with the nominal print owing to unchanged factory prices during the month”, added TD Economics.