Tuesday, January 25, 2005

Factory shipments edge up

FACTORY shipments barely edged up in November amid indications that rising costs and a strong dollar are continuing to take a toll on manufacturers. It was the first increase in the value of shipments in three months.

Manufacturers shipped goods worth $50.0 billion, a modest 0.2% increase from October.

This followed declines of 0.5% in September and 1.0% in October. November's increase was widespread, with 15 of 21 industries, accounting for 69% of total shipments, contributing to the rise.

Taking inflation into account, shipments rose 0.7% to $47.0 billion. In constant dollars, it was the first increase since August.

The Canadian dollar made strong gains in November, touching 85 cents US by the end of the month, its highest level since 1992. The sustained strength of the dollar continued to render manufactured goods, priced in Canadian dollars, more expensive abroad. This is a challenge for manufacturers trying to secure and retain foreign customers.

In addition, input costs have soared in 2004.

New orders at six-month low

The slight gain in shipments was accompanied by a decline in new orders which hit a six-month low. Unfilled orders have declined for four consecutive months.

Shipments in the computer and electronic products industry rose a robust 5.6% to $1.6 billion, making up ground lost in October.

In the petroleum and coal products industry, shipments rose to their highest level ever. However, auto parts shipments fell because of a slowdown in the industry.

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

  Print article

© 2004, 2005 Statistics Canada.