Tuesday, July 20, 2004

Manufacturers on a roll

Canadian manufacturers have generated their strongest momentum since the late 1990s in the wake of a robust global economy and soaring prices for some resource-based industries.

Manufacturing shipments rose for the sixth consecutive month in May, boosted by surging industrial prices, particularly for petroleum and paper products.

Companies shipped $49.1 billion worth of goods, up 1.1% from April. Shipments increased in 13 of the 21 industries, representing 60% of total shipments.

Between January and May this year, shipments rose 4.1% compared to the same five-month period in 2003.

Petroleum shipments soared 8.2% as prices for petroleum and coal products shot up nearly 10%. This was the biggest monthly gain in prices since February 2003.

Shipments of non-durable goods increased 2.6%, boosted by the prices in the petroleum industry. Durable goods manufacturing essentially held stable.

Auto plants boost output

Motor vehicle manufacturers reported shipments of $6.1 billion, the highest level in almost one year and a 1.3% gain from April.

Shipments advanced in eight provinces, with Ontario and British Columbia reporting the biggest gains. Ontario’s manufacturers posted a fourth straight increase.

In British Columbia, strong demand and increasing prices for forestry-related industries prompted a 3.9% gain in shipments.

Overall, the level of new orders edged down, the first decline in six months, and companies reported their first decrease in unfilled orders since December. Inventories broke the $60-billion mark for the first time since last July.

For more information, Russell Kowaluk (613-951-0600), Manufacturing, Construction and Energy Division.

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© 2004, Statistics Canada.