Manufacturing sales in B.C. rose 3.2 per cent in January to $5.6 billion in February, marking the sixth consecutive month of increases.
Durable goods led the way, up 4.1 per cent in the sixth straight monthly increase since August 2021. Non-durable goods also rose, albeit less swiftly, increasing 1.9 per cent in a fourth straight monthly gain. Broad growth reflects increased sales volume of goods as well as higher prices from inflationary pressure. Provincial sales rose 11.6 per cent over the same period last year.
Wood products sales drove the positive manufacturing trend. Sales increased 8.5 per cent over the previous month and matched the overall increase in durable goods with six straight months of increases.
Overall, sales increased over the previous month for six out of the 10 durable goods industries.
Non-durable goods volumes rose 1.9 per cent over the previous month. Leading the way were higher sales volumes in food manufacturing, which grew 1.5 per cent. At the other end of the spectrum was paper manufacturing, which fell 3.1 per cent.
The stellar pace of B.C. international goods exports continued through February with dollar-volume shipments steady after a January surge. Total exports reached $4.92 billion, marking a year-over-year increase of 33 per cent, slower than the 42 per cent increase the prior month. On a seasonally adjusted basis, export sales were unchanged from January.
Export performance was supported by firm foreign demand and higher commodity prices. Energy exports partly retraced after a January surge but remained 80 per cent higher than a year ago but recall that natural gas price levels spiked in February 2021, contributing to a base-year effect. Elevated exports in this sector reflect soaring prices for oil and natural gas, amplified in February by the Russian invasion of Ukraine. Meanwhile, forestry sales further rebounded with a 10 per cent year-over-year gain, while raw metal and mineral shipments increased 25 per cent, and metallic and non-metallic mineral products rose 31 per cent. •
Bryan Yu is chief economist at Central 1 Credit Union.
