Canadian manufacturing shipments fell 1.5% to $51.4 billion in November on a drop in petroleum prices and continued volatility in the auto sector, Statistics Canada said today.

“New orders also decreased a sharp 1.8%, due to weakness in the transportation equipment sector,” the agency said.

At 1997 prices, total shipments fell 0.8% to $47.5 billion for the third month in the past five, as some manufacturers cut production levels in recent months.

Gasoline and fuel oil prices dropped away in November from record levels as refineries along the U.S. Gulf Coast returned to service after disruptions caused by the 2005 hurricane season.

Petroleum shipments declined by 10.8% to $4.5 billion due to an 8.7% decline in the price of petroleum and coal products at the factory gate and production slowdowns due to maintenance at some plants.

Excluding the price-influenced petroleum industry, total manufacturing shipments decreased by 0.6%.

Motor vehicle shipments fell 5.1% to $5.9 billion in the month.

“Recent volatility in the auto sector has made 2005 motor vehicle manufacturing unpredictable,” StatsCan said.

The decline in motor vehicle manufacturing largely offset a surge in shipments in October of 8%, partly driven by the rush to supply showrooms with 2006 models.

Also decreasing in November were chemical products, down 6.5%, and motor vehicle parts, down 5.7%.

Shipments of primary metals surged seven% to $4.1 billion on strong global demand and rising industrial prices.

Only eight of the 21 manufacturing industries reported lower shipments in November, but among the eight were some of the largest, accounting for 50.6% of the total.

Fewer new orders were received by manufacturers in November, falling to $51.7 billion, due to substantial decreases in the transportation equipment sector.

Excluding transportation equipment, orders edged down by 0.2%.