Canadian Manufacturing Sales Fall by Record in April
Following strict social distancing measures and mandatory shutdowns in April, new data has emerged regarding the state of Canadian manufacturing sales.
According to Statistics Canada, April saw a record decline of 28.5% in manufacturing sales, after an only a 9.8 drop in the month prior, Refinitiv, a financial markets data firm, had predicted only a 20% decline in April. However, the month of May is anticipated to show a rebound in the industry, given that many firms are starting to resume production amid the easing of restrictions.
April saw a decrease of 24% in hours worked in the manufacturing sector, but in May those hours worked increased by 11%. Although data is indicative of a rebound, it may take some time before manufacturing sales are at pre-pandemic levels. Statistics Canada reported that at least 85.2% of manufacturing firms have in some way been impacted by COVID-19, with transport equipment sales falling by 76.4%, meanwhile petroleum and coal sales decreased by 46.4%.
Information for this briefing was found via Bloomberg and 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.
