Canada: Manufacturing shipments start 2019 on a positive note - NBF

A report released today in Canada showed that manufacturing shipments rose 1.0% in January. Kyle Dahms, analyst at the National Bank of Canada explains that sales were up in 15 of the 21 broad industries including food manufacturing (+2.8%), electronic equipment/appliances (+13.0%), wood products (+3.4%) and miscellaneous manufacturing (+5.2%), that more than offset falling shipments in the transportation equipment (-0.9%) and paper manufacturing (-2.7%) segments.

Key Quotes:

“After three consecutive declines, Canadian manufacturing sales came in above expectations in January. There were notable increases for food manufacturing and electronic equipment/appliances with the latter segment rising 13% in the month to its highest level since March 2001.”

“Sales in the transportation category acted as a drag on shipments, pulled down by the volatile aerospace product and parts industry (-12.4%).”

“The petroleum and coal products segment was flat in the month. If the relationship between energy prices and the latter segment holds true, the recent spike in Western Canadian Select prices should translate into a rebound.”

Looking at quarterly data, after having fallen an annualized 3.6% in the fourth quarter of 2018 - interrupting the longest streak of positive print since data collection began in 2002, 11 straight quarters - real total shipments are on track to increase 1.4% in the first quarter of 2019 after one month of data. That said, the recent buildup in inventories could hinder Q1 production in the manufacturing sector.”

“The unadjusted capacity utilization rate in Canada’s manufacturing sector, meanwhile, rose no less than 2.6 p.p. in January to 78.4%. “

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD extends gains to 1.1200 on sliding US yields

EUR/USD is trading close to 1.1200, in the wake of the European session as US yields continue falling. The European Parliament elections are in play and US durable goods are eyed.


GBP/USD off the highs as May announces stepping down on June 7th

GBP/USD is trading below 1.2700 after a quick rise to the upside as UK PM Theresa May announced she will step down on June 7th with Boris Johnson set to take over.


USD/JPY hangs near 1-week lows, just below mid-109.00s

The USD held on the defensive despite a goodish bounce in the US bond yields. Escalating US-China trade tensions continue to underpin JPY’s safe-haven demand. Traders now look forward to the US durable goods orders for some fresh impetus.


Gold consolidates in a range below weekly tops set on Thursday

Gold held steady through the early European session on Friday and was seen consolidating the overnight strong up-move to weekly tops.

Gold News

US Durable Goods Orders Preview: Sentiment is not enough

Durable goods orders expected to drop sharply after a strong March. Business investment thought to cool following the best quarter in nine months. Goods orders ex-transport have slowed despite strong consumer sentiment readings.

Read more