By Akhil Shah

OTTAWA (MNI) Canadian manufacturing sales increased 2.7% to
C$46.736 billion in July, Statistics Canada reported Thursday. This
follows three consecutive monthly declines and the gain more than offset
the prior losses.

Sales in Ontario accounted for over three-quarters of the gains. In
constant dollar terms manufacturing sales were 2.8% higher.

Of the 21 industries, 15 of them reported higher sales in July,
representing 74.8% of total manufacturing. The gains were led by
increases in petroleum and coal products, primary metal and fabricated
metal product industries, the agency reported.

Higher volumes, saw sales of petroleum and coal products increase
6.1% in July as refineries ramped up production after maintenance and
retooling in June.

The primary metal industry posted a 7.6% increase in sales as
plants increased production following maintenance shutdowns in June.
Since June 2009, sales in this industry have advanced steadily, reaching
C$4.3 billion in July, their highest level since October 2008, StatCan
said.

Sales in the fabricated metal products industry recorded an 8.7%
increase to C$2.9 billion in July, reaching 93.3% of their all-time peak
recorded in July 2008.

Other upward contribution came from the miscellaneous (+24.8%) and
motor vehicle (+5.5%) categories. However, the overall increase was held
back by a 17.5% decline in the aerospace product and parts industry.

Inventory levels edged down 0.1% in July, declining for the first
time since September 2010, with 13 of the 21 industries recording
decreases.

The bulk of the decline came from decreases in the petroleum and
coal product and aerospace product and parts industries, falling 8.5%
and 4.9% respectively. These declines were offset by a 3.7% increase in
machinery inventories and a 2.8% rise in primary metal inventories.

The inventory-to-sales ratio decreased from 1.39 in June to 1.35 in
July, ending the steady rise since January 2011.

Unfilled orders – orders which will contribute to future sales
assuming the orders are not canceled — increased for the seventh
consecutive time, rising 2.2% to C$60.1 billion. This was driven by
increases in the machinery industry (+7.6%) and aerospace product and
parts industry (+1.8%). Fabricated metal product industry also
contributed to the increase, with orders rising 4.1% in July.

Excluding the aerospace industry, unfilled orders advanced 2.7% in
July.

New orders increased 1.3% to C$48.1 billion led by gains in the
primary metal, machinery, fabricated metal product and petroleum and
coal product industries.

— Akhil Shah is a reporter with Need To Know News

** Market News International **

[TOPICS: M$C$$$ MAUDS$]