Manufacturing sales fell 6.0% to $38.4 billion in May, Statistics Canada said Wednesday. That’s the lowest level since November 1998.

Manufacturing sales had levelled off between February and April, after falling by 18.7% between October 2008 and January 2009.

Plant shutdowns in the motor vehicle and primary metal industries, along with continued volatility in the aerospace industry, accounted for most of the decline in May, StatsCan said.

“Constant dollar manufacturing sales fell 5.8% in May, indicating that lower volumes rather than price changes were behind the decrease in sales,” StatsCan said.

Sales fell in 17 of 21 manufacturing industries in May, accounting for about three-quarters of total sales.

The transportation equipment industry led the declines, falling 25.7% compared with April. Excluding the transportation equipment industry, total Canadian manufacturing sales decreased 2.1%.

Motor vehicle manufacturing sales dropped 25.4% on the back of several plant shutdowns. Motor vehicle parts manufacturing fell 22.2%, reflecting a decrease in demand from vehicle assembly plants.

Production in the aerospace industry decreased by $781 million, reversing a similar sized increase in April.

Primary metal manufacturers reported a 9.0% decrease in sales for May, a reflection of plant shutdowns, lower prices and weak market demand.

Miscellaneous manufacturers (-13.7%), machinery manufacturers (-6.0%), fabricated metal products (-3.5%), and food (-2.9%) were other industries with large sales decreases during May.

The petroleum and coal products industry was the main offsetting industry as sales rose 6.2%.

http://www.statcan.gc.ca/daily-quotidien/090715/dq090715a-eng.htm