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.