(Bloomberg) —
Canada’s manufacturing sales beat expectations in October on higher prices for petroleum products.
(Bloomberg) —
Factory sales rose 2.8% that month, Statistics Canada reported Wednesday in Ottawa. That’s a bigger increase than a 2% gain expected by economists in a Bloomberg survey and by the agency’s own early estimate. Compared with a year earlier, total sales were up 16.5%.
Sales increased in 12 of 21 industries, led by the petroleum and coal, food and chemical industries. Motor vehicles and machinery posted the biggest monthly declines.
The stronger-than-expected increase, however, was driven by price increases. Sales in constant dollars were unchanged in October and remain below pre-pandemic levels. Volumes have been mostly flat in recent months, pointing to fading momentum.
The data highlight the extent to which prices are masking what many economists expect to be the beginning of an economic slowdown. Most analysts expect output to be flat in the first two quarters of next year, with some forecasting a recession.
Total inventory levels increased at their lowest monthly pace, in dollar terms, since March 2021, edging up 0.3% in October. The inventory-to-sales ratio fell to 1.68 in October, from 1.73 in September.
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