Despite both manufacturing sales and wholesale trade falling in December across the country, the two sectors saw growth for the entire 2022 year, reported Statistics Canada on Wednesday.
The federal agency said manufacturing sales fell 1.5 per cent to $71.0 billion in December, the second consecutive monthly decrease. Sales decreased in 14 of 21 industries in December, led by the petroleum and coal product (-6.4 per cent), wood product (-7.5 per cent), food (-1.5 per cent) and plastics and rubber (-4.0 per cent) industries.
On a quarterly basis, sales increased 1.1 per cent to $215.2 billion in the fourth quarter of 2022, following a 2.1 per cent decrease in the third quarter. The transportation equipment (+3.5 per cent), petroleum and coal product (+2.7 per cent), chemical (+3.6 per cent) and food (+1.6 per cent) industries contributed the most to the increase, while the wood product industry (-7.3 per cent) posted the largest decrease.
The federal agency said manufacturing sales declined in eight provinces in December, led by Alberta, British Columbia and Ontario. In Alberta, sales decreased 5.8 per cent to $8.8 billion in December, almost entirely on lower sales of petroleum and coal products (-16.7 per cent), largely due to a drop in prices. On year-over-year basis, total sales in the province were up 12.1 per cent in December.
“Canadian manufacturing sales and inventories have continued to increase in 2022 in both current and constant dollars. The combination of higher demand for manufactured products after the reopening of economies and persistent supply chain challenges in 2022 impacted several manufacturing industries. Food supply and energy prices were prevalent issues in the year. Additionally, increasing interest rates, semiconductor chip shortages and higher transportation costs also had impacts throughout the year,” said the federal agency.
“Total manufacturing sales in current dollars increased 17.9 per cent to $850.9 billion in 2022, with sales increasing in 20 of 21 industries. The increase was mainly attributed to higher sales in the petroleum and coal product (+60.8 per cent), transportation equipment (+17.8 per cent), food (+11.9 per cent), fabricated metal (+20.4 per cent) and chemical (+13.4 per cent) industries. The wood product industry was the only manufacturing industry that posted a decline in 2022, down 6.6 per cent year over year to $47.7 billion.”
Statistics Canada said annual sales in the Canadian wholesale sector grew 11.8 per cent to $973.1 billion in 2022. Sales increased in six months of the year and increased on a quarterly basis as well throughout the year.
“In 2022, wholesale sales of miscellaneous goods increased by 21.6 per cent from 2021 to $144.1 billion. Four of the five industry groups reported higher sales from the previous year, but higher sales in the subsector were mainly led by two industry groups. Agricultural supplies contributed to 30 per cent, or $52.3 billion, of sales in the subsector, which equated to a 47.4 per cent rise from 2021. Sale levels of this industry group continued to rise from the second quarter of 2022, hitting its peak in August.
“Agricultural supplies was a leading contributor for miscellaneous goods, notably with higher sales in the second half of the year, when companies delivered year-end shipments and were able to provide supplies earlier than anticipated. With the geopolitical tension in Ukraine in 2022, there was a higher demand for Canadian fertilizer products. Exports of Canadian fertilizer, pesticides and other chemical products were at higher levels compared with previous years. Prices of chemicals for products in this industry rose in 2022, exceeding pre-pandemic price levels.”
(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 worked for 35 years at the Calgary Herald, covering sports, crime, politics, health, faith, city and breaking news, and business. He works as well as a freelance writer for several national publications and as a consultant in communications and media relations/training. Mario 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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