Canada Factory Sales Slip
World Economy

Canada Factory Sales Slip

Canada’s manufacturing sector slowed for the second straight month in March, hurt by declining sales in autos, aircraft equipment and metals.
Statistics Canada reported that March sales were $50-billion, down 0.9% month over month, adding to the revised 4% slump in February. The decline was widespread, with 16 of 21 industries posting lower sales, representing 88% of the manufacturing sector, Reuters reported.
On a year-over-year basis, sales were down 1.6%.
But Statscan noted that on a volume basis, March sales were up 0.1%, indicating that the decline on a value basis was entirely due to weaker prices. Volumes were up 0.3% from a year earlier.
The statistical agency said transportation equipment sales fell 3.4% in value in March from February, “mostly as a result of lower production of aerospace products and parts, motor vehicle parts, and other transportation equipment.”
It added that some of the decline reflected a stronger Canadian dollar versus its US counterpart. Motor vehicle sales were down 0.6%, while auto parts sales were off 4.1%. The volatile aerospace segment fell 7%.
Primary metal sales declined 5.6% month over month, wiping out three months of gains, Statscan said.
Sales in Ontario, the country’s biggest manufacturing province, fell 1.9%. Quebec, the country’s second-largest manufacturer, fell 1.4%.
Higher oil prices will provide short-term Canadian dollar protection, but overall confidence in the Canadian economy is likely to remain weaker with further concerns surrounding the non-oil sector.
The Bank of Canada is likely to be less confident in its next policy meeting with the Canadian dollar generally slightly weaker. Overall, USD/CAD is likely to find support on dips to the 1.27/1.28 area and any fresh retreat in oil prices towards $42 p/b, combined with a more optimistic Fed, could push the pair to the 1.35 area.


Short URL : http://goo.gl/MqJBy5
  1. http://goo.gl/ayVtIY
  • http://goo.gl/sDUWml
  • http://goo.gl/kp4Zyu
  • http://goo.gl/Q0jTqy
  • http://goo.gl/hCBFJC

You can also read ...

Japan the Land of Rising Robots
While automation will eliminate very few occupations entirely...
Coinbase says these assets will require additional exploratory work and cannot guarantee they will be listed for trading.
Coinbase Inc., the US cryptocurrency exchange that lets users...
China’s role in WTO has increased a lot with its exports increasing  seven times and imports six times.
Members of the World Trade Organization highlighted the...
President Mauricio Macri earlier ruled out a policy laid out in the IMF document—maintaining taxes on soybean exports.
The International Monetary Fund expects Argentina’s government...
EU to Forge Trade Alliances With China and Japan
The European Union’s top officials will meet the leaders of...
Inflation has declined to its lowest level  in more than two years.
The International Monetary Fund says Nigeria’s economic...
East African region has managed to reduce extreme poverty by 23%.
The East African region has enjoyed a more resilient economic...
Vietnam Property Developers Attract FDI
Amid narrowing credit sources and rising lending interest...