Manufacturing sales rose 3.3% to $72.1 billion in September, their highest level since February, boosted by strength in the auto and energy industries, Statistics Canada says.
The agency said Friday the increase came as sales rose in 14 of the 21 subsectors it tracks, with total sales in constant dollars up 2.7% for the month.
Bradley Saunders, North America economist at Capital Economics, noted that the rebound in September was not as positive for GDP growth as first meets the eye, since inventories of finished products and goods in process both ticked down that month.
“Nonetheless, with wholesale trade volumes up more than expected, we still see upside risks to StatCan’s preliminary estimate of 0.1% month-over-month growth in September,” Saunders write in a report.
Statistics Canada said the overall September manufacturing sales were lifted by a 9.2% gain in the transportation equipment subsector with motor vehicles up 11.8% and aerospace products and parts up 13%.
The agency noted the increase in motor vehicle sales, which followed a drop in August, came as some auto assembly plants in Ontario resumed full production after summer shutdowns and retooling.
“This will help stir some confidence in a sector which has faced a string of bad news recently, with new U.S. tariffs imposed on trucks and buses and a handful of manufacturers announcing plans to shift parts of production south of the border,” Saunders said.
The petroleum and coal subsector reported a gain of 5.3% due in part to higher sales of petroleum products following refinery maintenance shutdowns in August.
In a separate report, Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and oilseed and grain, rose 0.6%.
Wholesale sales, excluding those same items, in volume terms also rose 0.6% in September.
The overall increase in wholesale sales came as the food, beverage and tobacco subsector rose 1.6%, while sales in the building material and supplies subsector rose 1.9%.
Motor vehicle and motor vehicle parts and accessories merchant wholesalers gained 1.6%.