
Manufacturing Sales Rose in November as Weaker Loonie Supported Exporters
- Canadian manufacturing sales rose 0.8 per cent (m/m) in November. This was higher than anticipated in Statistics Canada’s flash estimate which called for a 0.5 per cent increase. After accounting for price effects, real manufacturing sales volumes were unchanged from October.
- Nominal sales grew in 13 of the 21 manufacturing subsectors. Sales of petroleum and coal products (+$204 million) rose the most. Meanwhile, sales of chemical products (–$84 million) saw the sharpest decline.
- Manufacturing sales grew in 5 of the 10 provinces. In relative terms, sales increased the most in Newfoundland and Labrador (+20.0 per cent) and fell the most in New Brunswick (–7.6 per cent).
- New orders rose by 1.8 per cent, while unfilled orders increased by 0.3 per cent.
Key insights
Building on a large gain the previous month, Canadian manufacturing sales rose again in November. Higher sales of petroleum and coal products drove much of the month’s growth, though machinery, primary metals, and computer and electronics sales also reported substantial gains. In the official data release, Statistics Canada noted that manufacturing exporters who transact mostly in U.S. dollars benefitted from the depreciation of the Canadian dollar in November. These impacts were most apparent in sales of transportation equipment and primary metals.
Donald Trump’s tariff threat remains a looming disaster for Canada’s manufacturing industry. As the president-elect’s inauguration draws near, some like Alberta premier Danielle Smith are becoming more convinced that Trump could make good on this threat which will have wide-ranging impacts on the Canadian and U.S. economies. Canada has prepared a shortlist of U.S. goods that could be targeted for retaliatory tariffs. Foreign Affairs Minister Melanie Joly stated that “everything is on the table” including energy export restrictions. Motor vehicle manufacturing, for example, is highly integrated between Canada and the United States and would suffer in a trade dispute. Ontario Premier Doug Ford has indicated the tariffs could lead to the loss of half a million jobs in the province. If delivered as announced, tariffs could be implemented as early as next Monday, January 20, when Trump takes office.
For more details about Canadian manufacturing and industrial trends, please explore our Industry Lens.
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