Manufacturing sales hit record high in November

Canadian manufacturing sales hit a record high in November, driven by sales of transportation equipment, petroleum and coal products and the chemical industry, Statistics Canada said Friday.

The agency said manufacturing sales climbed 3.4 per cent to $55.5 billion.

However, TD Bank senior economist James Marple wrote that “with November’s strength largely reflecting a reversal of earlier production interruptions, the path forward remains somewhat unclear.”

“Healthy job gains, rising incomes, and a strong outlook south of the border all bode well for manufacturers, but NAFTA uncertainty continues to hang over the outlook,” he said.

Talks to renegotiate the North American Free Trade Agreement are set to continue next week in Montreal. “President Trump has continued to talk tough, threatening to pull out of the agreement,” Marple wrote.

The Bank of Canada has noted that businesses are becoming increasingly concerned about the unknowns of the ongoing NAFTA talks.

However, the central bank still moved to raise its key interest rate target this week amid other signs of strength in the economy.

Statistics Canada said 12 of 21 industries, representing 81 per cent of the manufacturing sector, gained ground in November.

Sales of transportation equipment increased 9.1 per cent to $10.6 billion in November, following two consecutive monthly decreases.

The rebound reflected increased production after motor vehicle assembly plant shutdowns in October.