Manufacturing rate tops expectations

Canadian manufacturing sales rose more than expected in June, boosted by a 16 per cent surge in oil and coal shipments.

Statistics Canada said Thursday manufacturing sales were up 1.1 per cent to $58.1 billion in June, following a 1.5 per cent increase in May.

Statistics Canada says manufacturing sales rose 1.1 per cent to $58.1 billion in June, boosted by higher sales in the petroleum and coal product industry.

Economists had expected an increase of 0.9 per cent in June, according to Thomson Reuters Eikon.

In constant dollars, manufacturing sales were up 0.7 per cent in June.

“Coupled with other better recent economic data — and absent an unexpected shock — the economic backdrop still looks strong enough to warrant further gradual interest rate hikes from the Bank of Canada,” Royal Bank senior economist Nathan Janzen wrote in a brief note to clients.

Last week, Statistics Canada reported the economy generated 54,100 net new jobs in July and saw its unemployment rate fall back to its four-decade low of 5.8 per cent.