Canadian manufacturing sales for May 2023 1.2% versus 0.8% expected

Prior month -0.1% revised from 0.3% previously reportedManufacturing sales rose by 1.2% to $72.9 billion in May, after a 0.1% decline in April (revised from 0.3%).Details of the report showManufacturing sales was driven primarily by increases in sales of chemical products (+4.8%), motor vehicles (+4.8%), and machinery (+4.2%). Primary metal manufacturing sales saw the biggest drop (-6.9%). On a year-over-year basis, total sales were up 0.2% in May.Total sales in constant dollars went up by 2.2% in May, indicating a higher volume of goods sold. The Industrial Product Price Index fell by 1.0% in May.Sales of chemical products went up by 4.8% to $5.9 billion in May, led by higher sales of pesticide, fertilizer, and other agricultural chemical products in Alberta and pharmaceutical and medicine products in Ontario.Motor vehicle sales saw a rise of 4.8% to $4.9 billion in May. This was largely driven by higher production in Ontario, where most auto manufacturers sold more motor vehicles, leading to higher exports of motor vehicles and parts.Sales of primary metals saw the largest decline at 6.9% to $5.2 billion in May, mainly due to a decrease in demand causing a contraction of manufacturing activities worldwide, notably in China.Manufacturing sales increased in five provinces in May, led by Ontario and Alberta. Quebec saw the largest decline in sales.Total inventory levels fell by 0.6% to $122.8 billion in May. The inventory-to-sales ratio decreased from 1.72 in April to 1.69 in May.Unfilled orders decreased 1.5% to $105.0 billion in May, which was the lowest level since May 2022. The aerospace product and parts industry was the most significant contributor to this decline.The capacity utilization rate for the total manufacturing sector rose from 77.5% in April to 80.3% in May due to higher productionThe prior month was revised lower offsetting the gains above expectations this month. The USDCAD is little changed after the report> The USDCAD did reach a new low going back to September 2022 today reaching 1.30918. The price is now below the 50% midpoint of the move up from the October 2021 low. That level comes in at 1.3132.. It would take a move back above that midpoint level II tilt the bias back to the upside technically. This article was written by Greg Michalowski at www.forexlive.com.

Jul 15, 2023 - 02:30
Canadian manufacturing sales for May 2023 1.2% versus 0.8% expected
  • Prior month -0.1% revised from 0.3% previously reported

  • Manufacturing sales rose by 1.2% to $72.9 billion in May, after a 0.1% decline in April (revised from 0.3%).

Details of the report show

  • Manufacturing sales was driven primarily by increases in sales of chemical products (+4.8%), motor vehicles (+4.8%), and machinery (+4.2%). Primary metal manufacturing sales saw the biggest drop (-6.9%). On a year-over-year basis, total sales were up 0.2% in May.

  • Total sales in constant dollars went up by 2.2% in May, indicating a higher volume of goods sold. The Industrial Product Price Index fell by 1.0% in May.

  • Sales of chemical products went up by 4.8% to $5.9 billion in May, led by higher sales of pesticide, fertilizer, and other agricultural chemical products in Alberta and pharmaceutical and medicine products in Ontario.

  • Motor vehicle sales saw a rise of 4.8% to $4.9 billion in May. This was largely driven by higher production in Ontario, where most auto manufacturers sold more motor vehicles, leading to higher exports of motor vehicles and parts.

  • Sales of primary metals saw the largest decline at 6.9% to $5.2 billion in May, mainly due to a decrease in demand causing a contraction of manufacturing activities worldwide, notably in China.

  • Manufacturing sales increased in five provinces in May, led by Ontario and Alberta. Quebec saw the largest decline in sales.

  • Total inventory levels fell by 0.6% to $122.8 billion in May. The inventory-to-sales ratio decreased from 1.72 in April to 1.69 in May.

  • Unfilled orders decreased 1.5% to $105.0 billion in May, which was the lowest level since May 2022. The aerospace product and parts industry was the most significant contributor to this decline.

  • The capacity utilization rate for the total manufacturing sector rose from 77.5% in April to 80.3% in May due to higher production

The prior month was revised lower offsetting the gains above expectations this month.

The USDCAD is little changed after the report> The USDCAD did reach a new low going back to September 2022 today reaching 1.30918. The price is now below the 50% midpoint of the move up from the October 2021 low. That level comes in at 1.3132.. It would take a move back above that midpoint level II tilt the bias back to the upside technically.

This article was written by Greg Michalowski at www.forexlive.com.
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