Canadian manufacturing shipments in May were essentially unchanged from April at $50.2 billion, Statistics Canada said today.

Excluding the transportation sector, shipments were up 0.6%.

Meanwhile, unfilled orders increased for the fourth time in five months and stood 9.3% higher compared with December.

So far, recent gains in unfilled orders have not translated into a boom for shipments. The government agency says this may be linked to record high capacity rates.

Manufacturers operated at a record 87.0% of capacity in the first quarter of 2005, according to the most recent report on industrial capacity utilization rates.

StatsCan said shipments of auto parts and aerospace products weakened in May, but that was offset by strength in resource-related industries.

Year-to-date, shipments are up 4.3% compared to the first five months of 2004.