According to the latest data released by Statistics Canada, it appears that Canada’s manufacturing sector has been the subject of a larger-than-anticipated rebound in June, following country-wide economic shutdowns in the spring.
Manufacturing sales totalled $48.7 billion in June, which translates to a record 20.7% increase from the prior month, after Refinitiv economists only called for a 16.4% rebound. Although the sector’s recovery comes as good news, sales still remain 13.2% below February’s pre-pandemic levels.
The second quarter of 2020 saw manufacturing sales total $125.3 billion, which is a record decline of 22.8% from the previous quarter. According to Statistics Canada, the coronavirus-induced downfall of the manufacturing industry reached the lowest level in over 10 years, following the financial crisis. In terms of volume, manufacturing sales declined by 20.5% in the second quarter.
In the meantime, the petroleum and coal product industry also saw a significant increase, with sales topping $3.3 billion – a staggering 31.5% jump from May. Much of the rebound can be attributed to the rise in prices, as well as refineries increasing their production volumes.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.