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Canadian Manufacturing Production

Manufacturing Sector

  • Peel’s manufacturing sector represents an important (though diminishing) part of the Canadian manufacturing sector, and therefore, in the absence of Peel specific quarterly data on output, changes in the output of the Canadian and Ontario manufacturing sectors offer some indication of possible changes in Peel.
  • The indicators tracked/monitored are total Canadian Gross Domestic Product (GDP) and total sales/shipment of Canadian and Ontario manufactured goods.
  • Changes in these indicators are tracked to provide a broad understanding of changes in the sector; changes which are likely to provide a fair indication of changes at the Peel level.

Canadian Manufacturing Gross Domestic Product (GDP)

  • Variations in Canadian manufacturing GDP persisted throughout the first half of 2017.
  • However, positive changes dominated with growth four of the six months as follows:
    • January: 0.7 per cent;
    • February: -0.6 per cent;
    • March: 0.9 per cent;
    • April: -0.2 per cent;
    • May: 1.0 per cent; and
    • June: 0.2 per cent.
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Data Source – STATSCAN
  • The predominance of positive monthly changes contributed to quarterly growth Canadian manufacturing production in both the January – March and April – June quarters of 2017.
  • In the first quarter, total Canadian manufacturing GDP advanced by 1.7 per cent and was one of the strongest sectoral contributors to Canadian GDP growth during that quarter.
  • In the second quarter, total Canadian manufacturing GDP grew by 0.9 per cent, led mainly by strong performances in machinery (6.3 per cent), petroleum and coal products (2.8 per cent) and computer and electronics products (5.0 per cent).
  • The positive changes in the manufacturing sector throughout the first half of 2017 pushed total manufacturing GDP in June to a level which was 4.0 per cent above that registered twelve month earlier in June 2016.
  • This was well above the 0.9 per cent year-over-year change in total Canadian manufacturing GDP which was recorded in June 2016, a year earlier.

Canadian Manufacturing Sales/Shipment

  • For the first half of 2017, the value of total Canadian manufacturing shipment (seasonally adjusted) was approximately 323.9 billion, up 6.5 per cent relative to the first half of 2016.
  • Growth characterized changes in both durable and non-durable shipment:
    • Durable: Total shipment in the first half of 2017 amounted to $172.1 billion, up 4.7 per cent relative to the first half of 2016; and
    • Non-durable: During the first half of 2017, there was an 8.7 per cent jump in total shipment when compared with the first half of 2016 to reach $151.7 billion.
  • Throughout the Jan – June 2017 period, monthly changes in total manufacturing shipment fluctuated between a low of -1.8 per cent (June) and a high of 1.3 per cent (May).
  • However, quarterly changes remained positive, and supported growth over the six month period January – June 2017, when compared with the corresponding period of 2016.
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Data source – STATSCAN

  • In Ontario, total manufacturing shipment for the first half of 2017 amounted to $155.2 billion, an increase of 3.3 per cent relative to the first half of 2016.
  • Both durable (2.3 per cent) and non-durable (4.9 per cent) manufacturing shipment contributed to the growth observed during the period.
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Data source – STATSCAN
  • Viewed on a quarterly basis, changes in Ontario manufacturing shipments weakened from 1.8 per cent in the first quarter of 2017 to 1.0 per cent in the second quarter.
  • These were just below the changes of 2.2 per cent and 1.5 per cent respectively registered at the national level.
  • As a result, the total value of manufacturing sales/shipment for Ontario as a proportion of total Canadian manufactured shipment fell slightly in the second quarter to 47.8 per cent, from 48.0 per cent in the two preceding quarters.
  • However, compared with twelve months earlier, in June 2016, Ontario’s percentage share of the total sales/shipments of Canadian manufactured goods in Canada increased to 48.1 per cent, from 46.1 per cent in June 2016.