Manufacturing is picking up in Canada led by the transportation sector and buoyed by a weak loonie. It’s another sign the economy will rebound starting with the third quarter as policymakers and economists expect.
On Wednesday Sept. 16, Statistics Canada released July’s manufacturing report which showed manufacturing sales rose a higher-than-expected 1.7 percent with upward revisions to previously reported figures for May and June.
July’s increase mostly reflected a higher amount of goods sold, not just greater sales coming because of higher prices. Stats Can reports constant dollar sales increased 1.1 percent.
Motor vehicles (up 5.6 percent) and motor vehicle parts parts (up 12.1 percent) made up almost two-thirds of the July increase. Canadian auto parts manufacturers supply plants in Canada, Mexico, and the U.S; they are a key component of non-energy exports, which are expected, by policymakers, to be a source of strength in the Canadian economy.
