Prior month -1.4%Manufacturing sales for April -2.8% versus -2.0% expected -the largest monthly drop since October 2023 and the lowest level since January 2022.
Details:
Key contributors to the decline were:
Petroleum and coal products: -10.9%
Motor vehicles: -8.3%
Primary metals: -4.4%
Excluding petroleum and coal products, manufacturing sales still fell 1.8%.
Year-over-year, total manufacturing sales declined 2.7% in April.
On a constant dollar basis, manufacturing sales decreased 1.8%.
The Industrial Product Price Index fell 0.8% in April.
Feedback from manufacturers in April indicated that recent U.S. tariffs have significantly impacted Canada’s manufacturing sector. About half of respondents reported effects, with one-third citing price increases, one-quarter noting higher costs for raw materials, shipping, or labor, and one-fifth observing shifts in product demand. The transportation equipment, primary metal, and fabricated metal subsectors were hit hardest, with Ontario experiencing the largest tariff-related sales decline.
This article was written by Greg Michalowski at www.forexlive.com.