Canadian manufacturing sales for May 2023 1.2% versus 0.8% expected

<ul><li>Prior month -0.1% revised from 0.3% previously reported</li><li><p>Manufacturing sales rose by 1.2% to $72.9 billion in May, after a 0.1% decline in April (revised from 0.3%).</p></li></ul><p>Details of the report show</p><ul><li><p>Manufacturing sales was driven primarily by increases in sales of chemical products (+4.8%), motor vehicles (+4.8%), and machinery (+4.2%). Primary metal manufacturing sales saw the biggest drop (-6.9%). On a year-over-year basis, total sales were up 0.2% in May.</p></li><li><p>Total sales in constant dollars went up by 2.2% in May, indicating a higher volume of goods sold. The Industrial Product Price Index fell by 1.0% in May.</p></li><li><p>Sales of chemical products went up by 4.8% to $5.9 billion in May, led by higher sales of pesticide, fertilizer, and other agricultural chemical products in Alberta and pharmaceutical and medicine products in Ontario.</p></li><li><p>Motor vehicle sales saw a rise of 4.8% to $4.9 billion in May. This was largely driven by higher production in Ontario, where most auto manufacturers sold more motor vehicles, leading to higher exports of motor vehicles and parts.</p></li><li><p>Sales of primary metals saw the largest decline at 6.9% to $5.2 billion in May, mainly due to a decrease in demand causing a contraction of manufacturing activities worldwide, notably in China.</p></li><li><p>Manufacturing sales increased in five provinces in May, led by Ontario and Alberta. Quebec saw the largest decline in sales.</p></li><li><p>Total inventory levels fell by 0.6% to $122.8 billion in May. The inventory-to-sales ratio decreased from 1.72 in April to 1.69 in May.</p></li><li><p>Unfilled orders decreased 1.5% to $105.0 billion in May, which was the lowest level since May 2022. The aerospace product and parts industry was the most significant contributor to this decline.</p></li><li><p>The capacity utilization rate for the total manufacturing sector rose from 77.5% in April to 80.3% in May due to higher production</p></li></ul><p>The prior month was revised lower offsetting the gains above expectations this month. </p><p>The USDCAD is little changed after the report&gt; The USDCAD did reach a new low going back to September 2022 today reaching 1.30918. The price is now below the 50% midpoint of the move up from the October 2021 low. That level comes in at 1.3132.. It would take a move back above that midpoint level II tilt the bias back to the upside technically.</p>

This article was written by Greg Michalowski at www.forexlive.com.