OTTAWA — National Business News – Canadian manufacturing and wholesale sales looked steadier in dollar terms than they did after the effect of higher prices was removed, new Statistics Canada data show.
Manufacturing sales were essentially unchanged at $80.2 billion in September. In constant dollars, which adjust for price changes, sales fell 1.5 per cent. It was the largest monthly drop in factory sales volumes since January.
The gap matters because a rising sales total can reflect higher prices rather than more goods moving through the economy. Excluding petroleum and coal products, manufacturing sales fell 1.5 per cent even before the price adjustment.
Primary metal sales dropped 9.5 per cent and wood-product sales fell seven per cent. Petroleum and coal product sales rose 10 per cent in current dollars as conflict in the Middle East pushed refined-product prices higher, but that industry’s sales volume fell 0.6 per cent.
Quebec recorded the largest provincial decline, down four per cent to $20.3 billion. Alberta sales rose 7.2 per cent to a record $11.4 billion, led by petroleum and coal products. Alberta sales excluding that industry were up 1.6 per cent.
Inventories increased 1.7 per cent to $130.5 billion. The inventory-to-sales ratio rose to 1.63 months from 1.60, meaning factories held more goods relative to the pace of sales. Unfilled orders reached a record $136.8 billion, helped by aerospace and computer and electronic products.
Wholesale sales, excluding petroleum products and grain, rose 0.7 per cent to $92.5 billion in September. In volume terms they fell 0.2 per cent. Machinery and equipment and motor vehicles led the dollar gain, while building-material sales fell after eight straight monthly increases.
The mixed report does not by itself show that the wider economy is shrinking. Factory sales in current dollars were 10.9 per cent higher than a year earlier, and wholesale sales were up 7.8 per cent. Still, the softer volume readings point to caution beneath those headline gains.
The next major check on household costs comes Monday, when Statistics Canada releases the October Consumer Price Index. October wholesale advance data are scheduled for Nov. 25, while October manufacturing and wholesale reports are due in December.
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