Manufacturing sales in British Columbia jumped 7.9% in the 12 months to October, Statistics Canada announced December 16.
A total of $3.7 billion in manufacturing sales was registered in the province that month. The increase is 2.2 percentage points higher than the nationwide average of 5.7%.
Between September and October, B.C.’s manufacturing sales were up 0.3%.
Across the country, there was $52.7 billion in manufacturing sales in October. This is down 0.6% compared with September. The decrease was only the second time in 2014 that there was a decrease. A dip in the manufacturing of aerospace product and parts and primary metal sales were the biggest drivers behind the drop.
The monthly decline was weaker than analysts’ expectations of a 0.3% drop, said RBC Economics economist Laura Cooper, but overall manufacturing sales are on an upward trend.
“Even with the decline in October, volume sales are up 2.7% in 2014 year to date, which marks a notable improvement after a 0.9% decline in all of 2013,” Cooper said.
“The recent drop in oil prices, while likely to weigh on the nominal sales of petroleum refiners, is likely still a positive for the manufacturing sector on balance due to an attendant weakening in the Canadian dollar and a positive effect on U.S. demand.”
The biggest provincial increase was seen in Alberta with an 8.7% jump to $6.8 billion.
The Canadian dollar jumped slightly on the news, from around 85.8 cents U.S. to 86.1 cents. As of press time, the dollar was trading at just under 86 cents.
