Manufacturing sales in Alberta and all of Canada fell in November, Statistics Canada reports.
The federal agency reported there were sales of $6.1 billion in Alberta, down by 2.6 per cent in November from the previous month and by 4.7 per cent year-over-year.
Edmonton sales of $3 billion were down 6.3 per cent month-over-month and 3.3 per cent year-over-year, while Calgary sales of $991 million dropped by 10.6 per cent on a monthly basis and by 0.6 per cent on an annual basis.
Across Canada, manufacturing sales declined 0.6 per cent to $57 billion in November, the third consecutive monthly decrease. Lower sales in the primary metal, chemical and food industries were partly offset by higher sales in the transportation and fabricated metal industries, said the federal agency.
Sales were down in 11 of 21 industries, representing 55 per cent of total manufacturing sales. Sales of non-durable goods fell 1.3 per cent to $27 billion, while sales of durable goods were unchanged. In volume terms, manufacturing sales decreased 0.8 per cent, it said.
In Alberta, it was the fifth decline in six months. Sales decreased in 15 of 21 industries, with the largest decline in primary metals (-39.9 per cent), explained StatsCan.
“Manufacturing sales in Edmonton were down in 17 of 21 industries, with the largest decreases in the petroleum and coal product, chemical, and non-metallic mineral product industries,” it said.
“It’s hard to get a clean read on how the manufacturing sector fared in November. A rail strike reportedly held back shipments in some sectors. Statistics Canada pointed specifically to a big drop in primary metal shipments which shaved 0.8 ppts (percentage points) off headline volumes in the month. But a rebound in the transportation sector following earlier labour disruptions in the US—an increase that likely won’t be repeated—provided some positive offset,” said Josh Nye, Senior Economist with RBC Economics, in a commentary note.
“Transitory factors aside, the second half of 2019 wasn’t kind to Canadian manufacturers. What looked like the sector’s resilience in early-2019—while factory output in other countries declined—clearly faded as the year wore on. And the near-term outlook is mixed. External trade headwinds appear to be easing, but a survey of purchasing managers points to muted growth in the sector heading into 2020, an inventory overhang needs to be worked off, and the closure of GM’s Oshawa plant will permanently reduce motor vehicle output.”
Mario Toneguzzi is a business reporter in Calgary.
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