Canadian factory sales edge higher

Canadian factory sales rose slightly less than expected in May from April, edging up 0.1 per cent on aerospace and petroleum and coal products, Statistics Canada said on Wednesday.

It was the second monthly gain in 2015 for sales, which are affected by changes in the value of the Canadian dollar. Sales rose in 6 of 21 industries as the chemical and machinery industries declined.

 Analysts surveyed by Reuters had forecast an increase of 0.4 per cent in the value of shipments in May. The statistics agency said constant dollar sales fell 0.5 per cent, indicating an overall lower volume of goods sold.

 “The trend in real manufacturing continues to be down from levels reached halfway through last year, meaning that we’ll need more time for a more competitive exchange rate and a stronger trading partner to the south to influence the desired rotation away from the consumer and housing,” CIBC World Markets said in a note to clients.

 Sales of petroleum and coal products rose 5.6 per cent from April, mostly reflecting higher prices. Production in the aerospace products and parts industry, a more volatile part of the manufacturing sector, rose 22.2 per cent in May after declining 18.0 per cent in April.

theglobeandmail.com