Canadian manufacturing sales rose more than expected in November to their highest level in almost two years as a result of gains in the volatile aerospace industry and in motor vehicles and machinery, Statistics Canada data indicated on Tuesday.
Factory sales jumped 1.0 per cent to C$50.5-billion ($45.9-billion) in the month, well above the market forecast of a 0.3 per cent advance, and in volume terms sales increased 0.7 per cent.
Sales of aerospace products and parts, which can swing dramatically from month to month, shot up 21.3 per cent.
Motor vehicle sales, a more reliable gage of the health of the manufacturing sector, increased by a hefty 5 per cent, the highest since November 2007. Statscan said the motor vehicle industry comprised 9.6 per cent of total manufacturing in November after falling to 4 per cent during the 2008-09 recession.
The machinery industry saw sales rise 5.4 per cent while the food and chemical industries registered declines.
New orders for factory goods rose 1.2 per cent on demand for machinery, aerospace products and motor vehicles. Unfilled orders increased 0.4 per cent but would have fallen if aerospace was excluded.
Inventories grew more slowly than sales, rising just 0.2 per cent. As a result, the inventory-to-sales ratio fell to 1.37 in November from 1.38 in October.