Auto sector puts drag on sales nationally

Manufacturing sector sees drop-off, possibly attributable to some plant shutdowns

OTTAWA— October manufacturing sales fell 0.4 per cent from September following two months of increases, with much of the decline attributed to temporary shutdowns at automotive plants in Ontario, Statistics Canada reported Friday.

Canadian manufacturing sales totalled $53.5 billion, down from a revised $53.7 billion in September, it said.

Ontario’s manufacturing sales were down 2.2 per cent to $24 billion, the biggest drop of any province, mainly due to declines in the motor vehicle, machinery and food industries.

Quebec’s manufacturing sales were down 0.4 per cent to $13.2 billion. Four of 10 provinces showed advances, led by a 4.2-per-cent increase to $6 billion in Alberta and a 2.1-per-cent increase to $4.3 billion in British Columbia. Nova Scotia and New Brunswick also had monthover-month increases.

CIBC economist Nick Exarhos said the October report was significantly below expectations and “throws some cold water” on prospects for near-term growth.

However, Exarhos wrote in a brief note to clients that “the temporary nature of the shutdowns leaves room for catch up later in the quarter.”

He also noted that sales fell in only eight of the 21 industries tracked by Statistics Canada, but that they represent 56 per cent of the manufacturing sector.

Sales in the motor vehicle industry fell 6.7 per cent to $4.6 billion, reflecting lower volumes due to shutdowns at some assembly plants. Sales volumes in the motor vehicle industry fell 7.6 per cent.

Afour-week strike at a General Motors plant in Ingersoll, Ont., which affected production at supplier plants as well, was likely a factor, although Statistics Canada didn’t identify any specific disruptions.