Manufacturing sales climbed 3.3 per cent to $72.1 billion in September—their highest level since February—driven by strong gains in the automotive and energy sectors, Statistics Canada reported.
The agency noted that sales increased in 14 of the 21 tracked subsectors, with constant-dollar manufacturing sales up 2.7 per cent.
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Bradley Saunders, North America economist at Capital Economics, cautioned that the September rebound may not translate into equally strong GDP growth, as inventories of finished goods and work in progress declined. However, with wholesale trade volumes outperforming expectations, he still sees “upside risks” to StatCan’s preliminary estimate of 0.1 per cent month-over-month GDP growth for September.
Transportation equipment led the overall jump in manufacturing, rising 9.2 per cent. Motor vehicle sales surged 11.8 per cent, while aerospace products and parts climbed 13 per cent. The increase in auto sales followed an August pullback and came as several Ontario assembly plants returned to full production after summer shutdowns and retooling.
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“This should lift confidence in a sector that has faced a run of negative headlines, including new U.S. tariffs on trucks and buses and announcements from some manufacturers relocating segments of production to the U.S.,” Saunders added.
The petroleum and coal subsector saw a 5.3 per cent increase, supported by higher petroleum product sales after refinery maintenance activities in August.
In a separate release, Statistics Canada said wholesale sales—excluding petroleum-related products, hydrocarbons, and oilseed and grain—rose 0.6 per cent in both nominal and volume terms. The food, beverage, and tobacco subsector posted a 1.6 per cent gain, and building materials and supplies sales increased 1.9 per cent. Motor vehicle and parts wholesalers also saw a 1.6 per cent rise.
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