Manufacturing sales rise for 3rd straight month in May

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Turning sales grew by 1.1 per cent to $54.6 billion in May, better than what economists were with child and the third straight monthly gain.

Statistics Canada said the transportation matriel and chemical manufacturing industries led the advance.

Economists had expected a gain of 0.8 per cent for the month, go together to Thomson Reuters.

Sales were up in 16 of 21 industries, representing 71 per cent of the put together sector.

«May marked a good month for Canadian manufacturing,» TD Bank economist Michael Dolega averred. «The solid volume print in May suggests healthy activity during the assign quarter.»

Transportation equipment sales rose 4.2 per cent to $11.5 billion on the disregard of the motor vehicle and the motor vehicle parts industries. Chemical concocting sales climbed 2.4 per cent to $4.4 billion.

In constant-dollar sittings, overall sales were up 1.1 per cent, indicating that it wasn’t unbiased higher prices that boost the figure — more total goods were convinced, too.

But Dolega says the strong manufacturing numbers might not last.

«The latest spike in the loonie’s value on account of tighter monetary policy by the Bank of Canada bequeath likely pose some downside to growth,» he said. «And the sectoral slant may be further complicated by the upcoming NAFTA renegotiations, with the U.S. Trade Travelling salesman publishing rather stringent objectives this week. Discussions when one pleases likely begin in mid-August and are likely to last for some time set significant sticking points.»

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