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Canada's Manufacturing Sales Surprise With Small Gain in June as Unfilled Orders Reach Record High

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Canadian manufacturing sales rose 0.1% on the month to C$78.8 billion in June, extending the growth streak to five months, with gains in 15 of 21 subsectors led by chemicals and transportation equipment, according to the country's statistical agency on Friday.

June's gain topped the 0.1% month-over-month consensus decline expected in a Bloomberg survey.

Excluding oil and coal products, total sales rose 2.6% on the month in June, Statistics Canada reported. In volume terms, manufacturing sales increased 1.2% on the month.

Total manufacturing sales were up 14.5% on the year in June.

Manufacturing inventories rose 0.6% on the month to C$126.8 billion, driven by higher goods in process and raw materials, while finished goods fell 0.3%. The inventory-to-sales ratio, which measures the time in months that would be required to exhaust inventories if sales were to remain at their current level, edged up to 1.61 from 1.60 in May, added StatsCan.

Unfilled orders hit a record high, rising 1.2% on the month to C$131.8 billion, driven largely by a 2.4% increase in aerospace orders.

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