Canadian production activity suddenly cooled in October

Manufacturing sales suddenly slipped in October, dipping by 0.4 per cent to $53.5 billion following dual uninterrupted monthly increases as a automobile zone weighed on a result, Statistics Canada reported Friday.

Economists had been looking for an boost in sales for a month of one per cent.

After factoring for inflation, sales decreased 1.5 per cent in October, reflecting a reduce volume of products sold.

Sales fell in 8  of 21 industries, with sales of engine vehicles and other travel apparatus accounting for many of a month’s decline. Factoring out those dual industries, prolongation sales increasing 0.5 per cent, Statistics Canada reported.

Motor car attention sales slumped by 6.7 per cent to $4.6 billion for a second uninterrupted monthly decrease.

The dump was partly due to decreased prolongation after shutdowns of some public plants in October. Sales volume in the industry fell by 7.6 per cent for a month. A month-long strike during a GM CAMI auto plant in Ontario ended in a center of a month.

“Manufacturing volumes were hold behind in Oct by disruptions in a automobile sector, that have given been resolved,” TD economist Dina Ignjatovic pronounced in a commentary. “As such, automobile prolongation should rebound behind strongly over a residue of 2018, assisting to lift altogether outlay in a sector.”

Sales were also down in a chemical and machine industries in October, while increases were seen for the  petroleum and coal, and timber product industries, Statistics Canada said.

“Outside a automobile sector, brazen looking indicators indicate to a improved opening in a entrance months,” Ignjatovic said. “Moreover, with mercantile activity in a U.S. approaching to collect up, direct for Canadian-made products should follow suit, ancillary bureau prolongation in Canada.”

RBC comparison economist Nathan Janzen pronounced hurdles sojourn in a prolongation zone going forward, “particularly given a probability for a ‘bad’ outcome from ongoing NAFTA renegotiations.”

“Nonetheless, there are also positives in terms of stronger expansion in a U.S. industrial sector, that tends to import a lot from Canadian manufacturers, and a stronger domestic Canadian economy,” Janzen pronounced in a commentary.

Article source: http://www.cbc.ca/news/business/manufacturing-statistics-canada-1.4450214?cmp=rss