OTTAWA: Canadian factory sales rose at a faster pace than expected in November, marking a strong rebound from the previous month and adding to recent signs of a strengthening economy.
The value of factory sales rose 1.5% to 51.77 billion Canadian dollars (about $39.05 billion) in November from October, Statistics Canada said Thursday. Economists had anticipated a gain of 1% in the month, according to Royal Bank of Canada.
In volume terms, November factory sales rose 1.2%. October’s factory-sales data were also revised upward, and now indicate that shipments declined 0.6% instead of the earlier estimate of a 0.8% drop.
“This was a good report, with a solid headline print in both dollar and volume terms and positive revisions to boot,” TD Bank economist Michael Dolega said in a note.
“Moreover, the breadth of the gains both geographically and across industries was encouraging, suggesting that Canada’s manufacturing sector is finding its footing after several months of uneven performance.”
Thursday’s report followed stronger-than-expected data on jobs and exports, both released earlier this month, and a recent survey by the Bank of Canada that suggested business sentiment is improving. However, some economists have warned that the outlook for Canadian manufacturers and exporters could change if U.S. president-elect Donald Trump introduces more protectionist policies.
In holding Canada’s key interest rate at 0.5% on Wednesday, Bank of Canada Governor Stephen Poloz acknowledged that a future rate cut remains possible amid heightened uncertainty about U.S. and global trade policies.
In November, primary metal manufacturing sales rose 9.1% to C$3.98 billion, marking the largest gain in dollar terms since April 2012. Petroleum and coal product sales advanced 3.7% to C$4.48 billion, mainly because of higher volumes that followed maintenance work in earlier months.
