Statistics Canada said manufacturing shipments retreated 0.6% to $50.4 billion in September, as a marked decline in the aerospace industry weakened production.

The decreased ended a nine-month climb for shipments, StatsCan said today.

However, when the aerospace industry is excluded, shipments were comparable with August when they hit a record $50.8 billion.

And despite the September decline, 2004 has been a busy year.

“From January to September, shipments were up a brisk 8.2% compared with the same period in 2003.”

Statistics Canada said the brunt of the September decline was concentrated in the aerospace products and parts industry.

“Seasonal factors, coupled with the completion of some contracts in prior months, contributed to a 22.9% drop in production to $880 million in September. In spite of the big decrease, year-to-date production remained 10.7% above levels of the same period in 2003.”

Overall, 11 of 21 industries surveyed reported decreases in September. But those industries accounted for 70% of total shipments.

Signals on inventories were mixed.

“Raw material inventories, which are generally built up in anticipation of future production, rose 0.4% to $27.1 billion – the seventh successive increase.”

Inventories of finished products increased 1.1% to $21 billion, the highest level since October 2001.

Unfilled orders weakened further during the month.

“Orders retracted by 1% to $37.1 billion, following a 0.9% drop in August.”

“New orders fell 0.6% to $50.0 billion in September,” the agency said.

In a separate release, StatsCan said new motor vehicle sales declined 3.2% in September. Weak demand for North American-built passenger cars was largely responsible for the second consecutive monthly decrease, the government agency said.