Manufacturing shipments in Canada rebounded sharply in March by 2.1%, following 0.2% decline in February. National Bank of Canada analyst Kyle Dahms, explains that the rebound in sales of transportation equipment were a key factor.
“Manufacturing sales in Canada came in 6 tenths above consensus expectations in March. That impressive result can be traced back to the sales of transportation equipment which rebounded after three consecutive monthly declines. Even when excluding the sales of transportation equipment (+4.5%), manufacturing sales still rose a noteworthy 1.6% in the month. Part of that rise can be attributed to a third consecutive month of significant increases for the petroleum and coal products industry which jumped 3.2% in volume terms (i.e. excluding price effects in the month).”
“Looking at quarterly data, real shipments rose an annualized 1.3% in Q1 following a -2.6% read in the prior quarter. Moreover, real inventories were rising at a solid pace in the quarter. This is consistent with our view that Canada’s GDP growth may have reached 0.9% in the first quarter of 2019.”
“The unadjusted capacity utilization rate in Canada’s manufacturing sector, meanwhile, rose 2.2 percentage point to 80.7%.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.