According to the latest data released by Statistics Canada, it appears that Canada’s manufacturing sector has been the subject of a larger-than-anticipated rebound in June, following country-wide economic shutdowns in the spring.
Manufacturing sales totalled $48.7 billion in June, which translates to a record 20.7% increase from the prior month, after Refinitiv economists only called for a 16.4% rebound. Although the sector’s recovery comes as good news, sales still remain 13.2% below February’s pre-pandemic levels.
The second quarter of 2020 saw manufacturing sales total $125.3 billion, which is a record decline of 22.8% from the previous quarter. According to Statistics Canada, the coronavirus-induced downfall of the manufacturing industry reached the lowest level in over 10 years, following the financial crisis. In terms of volume, manufacturing sales declined by 20.5% in the second quarter.
In the meantime, the petroleum and coal product industry also saw a significant increase, with sales topping $3.3 billion – a staggering 31.5% jump from May. Much of the rebound can be attributed to the rise in prices, as well as refineries increasing their production volumes.
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Information for this briefing was found via 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.
