World

Canadian manufacturing sales drop in September as chip shortages hit auto sector

OTTAWA –

Canada’s manufacturing revenue fell 3% to $58.5 billion in September as motor vehicle sales fell as continued semiconductor shortages hit auto production.

Statistics Canada said on Monday, sales of motor vehicles fell 35.6% to $1.9 billion, the lowest level since May 2020, while sales of motor vehicle parts fell. 13.5% down to $1.8 billion.

Meanwhile, higher prices helped gasoline product sales increase 3% to $6.7 billion in September.

Stephen Brown, senior Canadian economist at Capital Economics, said the new closures of auto plants hit manufacturing sales heavily in September.

“While many factories reopened this month, there is still a chance that overall manufacturing sales will decline again this quarter, albeit more modestly than in the fourth quarter,” Brown wrote in a report. father”.

The auto sector has been hit hard by a global shortage of semiconductor chips due to pandemic-related manufacturing issues and skyrocketing demand for electronics. Shortages have forced automakers to slow down or halt production around the world.

Brown noted that even excluding the transportation sector, manufacturing sales fell 0.8% month-over-month.

Total manufacturing sales in fixed dollar terms fell 4.2% in September, indicating lower sales volumes.

In a separate report, Statistics Canada said wholesale sales rose 1% in September to $71.3 billion.

This increase came as the miscellaneous goods sub-sector grew by 5.9% as sales in the agricultural products sector increased by 20.9% due to increased domestic and international demand for potassium.

Somewhat offsetting the increase was wholesale sales of motor vehicles and motor vehicle parts and accessories, which fell 2% in September.

Wholesalers of building materials and supplies also saw a 1.4% drop in revenue.

This report by the Canadian Press was first published on November 15, 2021

Source link

news7h

News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button