Canadian manufacturing sales bounced back more than expected in May as the gains were led by the chemical, machinery and wood product industries.
Statistics Canada said Tuesday that manufacturing sales rose 1.4% to $57.1 billion in May. The improvement followed a drop of 1.1% in April.
Economists had expected an increase of 0.5% in May, according to those polled by Thomson Reuters Eikon.
Manufacturing sales in constant dollars were up 0.9%.
“Factory sales in May more than made up for the ugly drop seen in the prior month,” said CIBC economist Royce Mendes, noting that the result for April was also revised to show a smaller decline. The initial reading had shown a drop a 1.3% for April.
“Today’s reading would have been even brighter had it not been for extended shutdowns at several refineries contributing to a further decline in petroleum sales.”
Statistics Canada said sales rose in 14 of 21 industries, led by the chemical, machinery, and wood product industries.
The chemical industry rose 6.2% to $4.7 billion in May, while machinery sales climbed 8.9% to $3.3 billion. Wood products increased 6.1% to $3.1 billion.
The transportation equipment industry fell 1.9% to $10.6 billion, while the petroleum and coal product industry dropped 1.8% to $5.2 billion in May.