Higher Petroleum and Coal Sales Push Canadian Manufacturing Higher In October - InvestingChannel

Higher Petroleum and Coal Sales Push Canadian Manufacturing Higher In October

Canada’s monthly survey of manufacturing rebounded in October after declines in August and September. Total manufacturing sales rose 2.1 percent, fueled by higher petroleum and coal products, which jumped 15.9 percent. Sales of transportation equipment saw their highest level since May 2023, helped by motor vehicle sales. 

Somewhat offsetting the gains was a loss of 3.5 percent in paper sales due to lower sales in the pulp, paper and paperboard mills industry group. Total sales decreased 0.2 percent year over year.

The report also showed that inventories—the time it would take to deplete inventories if sales stayed consistent—fell from 1.72 in September to 1.69 in October. 

Canada’s capacity utilization for the entire manufacturing sector rose in October, most noticeably in chemical products and primary metals. Capacity utilization is the percentage of a company’s or economy’s productive capacity that is currently being used and indicates how efficiently available resources are being utilized to produce goods or services. 

The monthly survey of manufacturing provides estimated values of manufacturers’ shipments, inventories and unfilled orders. The survey is used by the Bank of Canada to analyze the Canadian economy and the health of the manufacturing sector. 

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