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Manufacturing Sales –
Canada – October 2016
BY: PAUL YOUNG, CPA, CGA
DATE: DECEMBER 15, 2016
This presentation will discuss the
manufacturing sector for Canada
- The focus will be on sales, PMI and industrial capacity
Agenda
• Sales data by industry segment
• Sales data by province
• PMI Index
Canada Manufacturing Sales by Industry
Segment – October 2016
Source – Stats Canada
• US auto sales rose more than expected in
October, amid concern that the market has
peaked. Source -
http://www.businessinsider.com/us-auto-
sales-october-2016-2016-11
• Housing starts are strong. The main issue is
softwood lumber – “The association fears
the dispute could harm various sectors in
addition to forestry, as well as raise housing
costs in the U.S., which would damage the
gradual recovery since the 2008 financial
crisis. - See more at:
http://www.woodbusiness.ca/industry-
news/news/the-repercussions-of-higher-
lumber-prices-
3805#sthash.47CSh0nk.dpuf” Source -
http://www.woodbusiness.ca/industry-
news/news/the-repercussions-of-higher-
lumber-prices-3805
• Oil is struggling to get above $50/barrel.
• Capital investment has been slow in 2016
Manufacturing Sales by
Province
Source – Stats Canada
Analysis/Comments:
• Sales were down in seven provinces in October,
with Ontario, Quebec and Alberta posting the
largest declines.
• Sales in Ontario were down 0.8% to $25.0 billion,
following two consecutive monthly gains. The
decline in October reflected lower sales in the
transportation equipment (-0.7%), machinery (-
4.2%) and beverage and tobacco (-6.9%)
industries.
• In Quebec, sales decreased 1.2% to $11.7 billion in
October, following a 1.5% increase in September.
• Manufacturers of petroleum and coal products,
primary metals and food products reported the
largest declines.
• Manufacturing sales in Alberta fell 2.0% to $5.2
billion in October, mainly the result of lower sales
in the petroleum and coal product (-6.2%) and the
fabricated metal product (-8.9%) industries.
• The overall decline in October was partially offset
by higher sales in Newfoundland and Labrador
(+18.9%) and Manitoba (+2.1%). For both
provinces, higher non-durable goods sales were
largely responsible for the gains.
PMI Index – Canada
Source - http://www.tradingeconomics.com/canada/manufacturing-pmi and
Analysis/Quotes:
Canada’s stronger growth in October
indicated an improvement in the
nation’s business activity. Specifically,
the stronger performance of Canada’s
manufacturing PMI is mainly due to
the following:
• New orders rose at a faster pace in
October 2016 while production
volumes remained stagnant. Export
orders rose at a slower rate in
October.
• Domestic demand also showed
weaker growth during the same
month.
• Manufacturers indicated an
improvement in employment
growth in October.
Source -
http://marketrealist.com/2016/11/canadas-
manufacturing-pmi-improve-october/
Industrial Capacity
Source - https://www.steelorbis.com/steel-news/latest-news/industrial-production-
capacity-in-canada-rises-to-819-percent-in-q3-962172.htm

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Manufacturing Sales - Canada - October 2016

  • 1. Manufacturing Sales – Canada – October 2016 BY: PAUL YOUNG, CPA, CGA DATE: DECEMBER 15, 2016
  • 2. This presentation will discuss the manufacturing sector for Canada - The focus will be on sales, PMI and industrial capacity
  • 3. Agenda • Sales data by industry segment • Sales data by province • PMI Index
  • 4. Canada Manufacturing Sales by Industry Segment – October 2016 Source – Stats Canada • US auto sales rose more than expected in October, amid concern that the market has peaked. Source - http://www.businessinsider.com/us-auto- sales-october-2016-2016-11 • Housing starts are strong. The main issue is softwood lumber – “The association fears the dispute could harm various sectors in addition to forestry, as well as raise housing costs in the U.S., which would damage the gradual recovery since the 2008 financial crisis. - See more at: http://www.woodbusiness.ca/industry- news/news/the-repercussions-of-higher- lumber-prices- 3805#sthash.47CSh0nk.dpuf” Source - http://www.woodbusiness.ca/industry- news/news/the-repercussions-of-higher- lumber-prices-3805 • Oil is struggling to get above $50/barrel. • Capital investment has been slow in 2016
  • 5. Manufacturing Sales by Province Source – Stats Canada Analysis/Comments: • Sales were down in seven provinces in October, with Ontario, Quebec and Alberta posting the largest declines. • Sales in Ontario were down 0.8% to $25.0 billion, following two consecutive monthly gains. The decline in October reflected lower sales in the transportation equipment (-0.7%), machinery (- 4.2%) and beverage and tobacco (-6.9%) industries. • In Quebec, sales decreased 1.2% to $11.7 billion in October, following a 1.5% increase in September. • Manufacturers of petroleum and coal products, primary metals and food products reported the largest declines. • Manufacturing sales in Alberta fell 2.0% to $5.2 billion in October, mainly the result of lower sales in the petroleum and coal product (-6.2%) and the fabricated metal product (-8.9%) industries. • The overall decline in October was partially offset by higher sales in Newfoundland and Labrador (+18.9%) and Manitoba (+2.1%). For both provinces, higher non-durable goods sales were largely responsible for the gains.
  • 6. PMI Index – Canada Source - http://www.tradingeconomics.com/canada/manufacturing-pmi and Analysis/Quotes: Canada’s stronger growth in October indicated an improvement in the nation’s business activity. Specifically, the stronger performance of Canada’s manufacturing PMI is mainly due to the following: • New orders rose at a faster pace in October 2016 while production volumes remained stagnant. Export orders rose at a slower rate in October. • Domestic demand also showed weaker growth during the same month. • Manufacturers indicated an improvement in employment growth in October. Source - http://marketrealist.com/2016/11/canadas- manufacturing-pmi-improve-october/
  • 7. Industrial Capacity Source - https://www.steelorbis.com/steel-news/latest-news/industrial-production- capacity-in-canada-rises-to-819-percent-in-q3-962172.htm