Canadian manufacturing sector faces 2.1 percent drop in March

(MENAFN) In March, Canada's manufacturing sector faced a downturn, with sales declining by 2.1 percent to USD69.9 billion, as reported by the country's statistical agency on Wednesday. Despite market expectations of a 2.4 percent decrease, the actual figure came in slightly better. Notably, February's figure was revised upward, indicating a gain of 0.9 percent from the initially reported increase of 0.7 percent.

The decline in March was primarily driven by reduced sales of petroleum and coal products, along with motor vehicles. Sales of petroleum and coal products, after a notable 5.7 percent increase in February, experienced an 8.0 percent decrease to USD8.0 billion in March, attributed to lower volumes, according to Statistics Canada.

Similarly, sales of motor vehicles saw a significant drop of 7.9 percent to USD4.6 billion in March, following two consecutive monthly increases. Additionally, sales of motor vehicle parts declined by 2.8 percent.

Analyzing the quarterly performance, total manufacturing sales experienced a 0.9 percent decrease during the January-March period. This decline was primarily influenced by lower sales of transportation equipment, which fell by 3 percent, and primary metals, which saw a decline of 4.4 percent.

These figures underscore the challenges faced by Canada's manufacturing sector, particularly in key segments like transportation equipment and primary metals, reflecting broader economic uncertainties and fluctuations in demand. Moving forward, policymakers and industry stakeholders may need to closely monitor these trends and implement measures to support the resilience and growth of the manufacturing sector.



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