Canadian manufacturing sales plummet as economy cools
Last Updated: Monday, February 16, 2009 | 11:20 AM ET
CBC News
In the latest sign of a drastically cooling economy, Statistics Canada said Monday that sales of manufactured goods tumbled eight per cent in December of 2008 — the steepest monthly decline since the measurement began in 1992.
In its monthly survey of manufacturing, Statistics Canada reports that both prices and volume were down by near-equal amounts last month.
The total value of manufacturing sales in December was $44.2 billion.
The petroleum and automobile industries had big falls, with declines of 18.4 per cent and 14.2 per cent respectively.
The metals sector also saw a precipitous fall in sales in the last month of 2008, down 14.4 per cent to $3.5 billion.
Statscan says sales fell in 20 of 21 manufacturing industries, with printing and related support activities recording the only increase, at 0.1 per cent.
Nine of 10 provinces posted lower manufacturing sales in December, ranging from a drop of 14.2 per cent in both Nova Scotia and Saskatchewan to a 2.4 per cent decrease in Manitoba.
In Ontario, the province most dependent on manufacturing, sales declined 9.2 per cent, to $20.3 billion. Decreases in transportation equipment, petroleum and coal products and primary metals accounted for nearly three-quarters of the overall provincial decline.
Sales in British Columbia decreased 8.7 per cent. The drop in sales reflected declines in the wood products, primary metals and non-metallic mineral products industries.
Alberta's manufacturing sales fell 8.5 per cent in December, on the heels of a 5.7 per cent drop in November. Key industries which were down over the month included petroleum products, chemical products and fabricated metal products.
Manufacturing sales in Quebec dropped by 5.3 per cent, which was attributable to the petroleum and coal products industry and the primary metals industry.
Only Prince Edward Island, which has a tiny manufacturing sector worth just over $100 million per month, saw an increase in sales, an upward swing of 2.3 per cent.
Sales of manufactured goods in Canada are now at their lowest level since 2005.
With files from the Canadian Press
