Manufacturing shipments remained virtually unchanged in May, declining 0.1% to $49.7 billion, Statistics Canada reported today.

Manufacturing shipments were on a slow downward trend throughout most of 2006 before posting a strong first quarter this year.

The rising Canadidan dollar contributed to a 0.6% drop in manufacturing employment during the month, a loss of 12,300 jobs, StatsCan said.

Despite these challenges, the volume of manufacturing shipments, taking price fluctuations into account, rose 0.4% to $45.5 billion — their highest level since the beginning of 2006.

Only nine of 21 manufacturing industries actually decreased in May, but they represented about 57% of total shipment outputs.

Durable goods were the main source of weakness, declining 1.2% to $26.7 billion, while shipments of non-durable goods continued to strengthen, especially in resource-based industries.

Manufacturers of petroleum and coal products, chemical products, and plastic and rubber products pushed non-durable good shipments up 1.2%, the fourth straight monthly increase.

Unfilled factory orders continued to increase, rising 1.8% in May for an eighth straight monthly gain.