Manufacturing sales edged up 0.1% in February for the eighth increase in nine months, but the rate of growth fell short of market expectations.

Statistics Canada reported on Friday that sales rose to $44.1 billion, up 0.3% in constant dollars.

Market expectations had been for a stronger 1% gain in February, according to RBC Economics.

Sales of non-durable goods rose 0.4% during the month, while sales of non-durable goods declined by 0.3%.

Sales gains were reported in 12 of 21 industries, representing 42.7% of total sales.

Among the strongest industries were plastic and rubber manufacturers, up 4.4%, and chemical product manufacturers, up 4.3%.

The petroleum and coal products industry suffered the largest drop in sales, at 3.9%. The transportation equipment industry also declined, with motor vehicle manufacturing sales falling 1.1% and motor vehicle parts sales down 3.4%.

Most of the sales gains occurred in Western Canada and Ontario, while Atlantic Canada experienced sharp declines.

“The moderate 0.3% gain in the volume of manufacturing sales in February suggests that manufacturing provided little support to overall GDP growth in the month,” said Nathan Janzen, economist at RBC Economics.

Even though the pace of growth is slow, however, economists said the continued growth in manufacturing sales is encouraging.

“While a gradual recovery for manufacturing should be expected, conditions are improving for manufacturers and the outlook is positive,” said Grant Bishop, economist at TD Economics.

IE