Manufacturing sales top expectations for November, gaining 1.5%

Statistics Canada said Thursday the rise followed a drop in October that was revised to a drop of 0.6% from 0.8% contraction.

“Although growth in the manufacturing sector has been modest, the October decline looked oversized, particularly given some signs of improvement in the U.S. industrial sector and a still-weak Canadian dollar,” Royal Bank senior economist Nathan Janzen wrote in a report.

“The rebound in November is consistent with our view that, looking through monthly volatility, the underlying trend in the sector remains modestly positive reflecting a continued easing in the drag from the oil and gas sector and a modest pickup in U.S. demand.”

In constant dollars, sales climbed 1.2%, indicating a higher volume of manufactured goods was sold.

Sales were up in 14 of the 21 industries, boosted by the primary metal, petroleum and coal and chemical sectors.

The primary metal sector rose 9.1% to $4.0 billion, while petroleum and coal product sales increased 3.7% to $4.5 billion. The chemical manufacturing industry rose 3.4% to $4.4 billion.

However, the transportation equipment sector fell 2.3% to $10.3 billion due to a drop in the aerospace product and parts industry, which dropped 7.4% and the “other transportation equipment industry,” which fell 26.8% after a significant increase in October.

Statistics Canada says sales were up in every province except New Brunswick, which dropped 2.4% to $1.3 billion.

Quebec rose 3.0% to $12.1 billion, while Alberta rose 3.9% to $5.4 billion in November.