Canadian manufacturing sales dipped 1.5 per cent in February, or 2.3 per cent in volume terms. While this is clearly a very disappointing report, the trend in manufacturing is still very strong, growing at a 3-month average of 1.5 per cent.
February's weak report largely reflects a temporary softness in Canadian automotive, aerospace and transportation equipment production. Total Canadian sales may be impacted further in coming months as the fallout from the devastating earthquake in Japan begins to disrupt global supply chains as well as a significant appreciation of the Canadian dollar.
Manufacturing shipments in BC bucked the National trend, growing 0.9 per cent in February. However, manufacturing growth has clearly decelerated from previous months.
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