Manufacturing sales decreased 1.7% to $71.5 billion in June, on widespread declines over 14 of 21 subsectors, led by the petroleum and coal product (-8.3%), chemical (-6.5%), and machinery (-5.5%) subsectors. Sales of motor vehicles increased the most, rising 11.4% to $5.6 billion in June. On a quarterly basis, total sales fell 0.8% in the second quarter of 2023, mainly on lower sales in the petroleum and coal product (-8.1%) and primary metal (-8.9%) subsectors. Year over year, total sales decreased 1.4% in June, according to a report released Tuesday by Statistics Canada.
Kateryna Babaieva
“Sales of petroleum and coal products declined 8.3% to $7.9 billion in June, the second consecutive monthly decline and the lowest level since December 2021. On a quarterly basis, petroleum product sales were down 8.1% in the second quarter of 2023. The month-over-month decline in June was attributable to lower volumes (-10.8%), as prices of refined petroleum energy products (including liquid biofuels) rose 2.5% in June. Widespread slowdowns in economic activities as well as lower international trade weighed down industrial energy consumption and contributed to the decline in real sales of petroleum in June. Exports of refined petroleum energy products (including liquid biofuels) decreased 9.1% in June,” said the federal agency.
“Many auto manufacturing plants increased their production in June and operated at a higher production capacity, leading to an 11.4% increase in sales of motor vehicles to $5.6 billion, the highest level since June 2019. On a quarterly basis, motor vehicle sales were up 8.1% in the second quarter of 2023, the third consecutive quarterly gain. Sales of motor vehicle parts, however, declined 6.8% in June following a significant increase in May. The exports of motor vehicles and parts increased 4.7% in June.”
StatsCan said manufacturing sales fell in five provinces in June, led by Alberta and Ontario. Sales in Quebec increased the most.
“In Alberta, sales decreased 8.0% to $8.5 billion in June, the lowest level since January 2022, largely on lower sales of petroleum and coal products (-12.8%) and chemicals (-17.6%). The decline in the petroleum and coal product subsector was the main contributor to a 9.6% decrease in total sales in Edmonton. With the decline in June 2023, total sales in Alberta were 8.4% lower compared with June 2022 and decreased 2.8% in the second quarter of 2023 compared with the first quarter,” it said.
“Sales in Ontario fell 1.1% to $32.6 billion in June, mainly driven by the motor vehicle parts industry group (-7.1%), as well as the petroleum and coal product (-10.0%) and machinery (-7.2%) subsectors. The declines were partially offset by a 10.9% increase in sales of motor vehicles. Sales in Toronto declined 3.5% to $13.2 billion in June, largely on lower sales in the transportation equipment subsector (-4.2%). Sales of transportation equipment in Toronto were at their highest level on record in May.
“In Quebec, sales rose 1.0% to $17.7 billion in June, on higher sales of primary metals as well as chemical products. Despite lower prices for primary non-ferrous metal products in June (-3.7%), their sales were up, mostly due to the end of an unplanned shutdown in a non-ferrous plant in Quebec. Despite the gain in total manufacturing sales in Quebec in June, sales in Montréal fell 2.1% on lower production of aerospace products and parts (-6.6%), while Québec posted an 8.1% decline due to lower sales of petroleum and coal products. On a year-over-year basis, total sales in the province were down 3.5% in June.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list)
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