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UPDATE 1-Canada factory sales rise more than expected in January

Published 2016-03-16, 08:40 a/m
© Reuters. UPDATE 1-Canada factory sales rise more than expected in January

(Adds data from report)
OTTAWA, March 16 (Reuters) - Canadian manufacturing sales
rose far more than expected at the start of the year, driven by
a jump in sales of motor vehicles, auto parts and food, data
from Statistics Canada showed on Wednesday.
The 2.3 percent increase in January topped analysts'
forecasts for a gain of 0.5 percent and pushed sales up to a
record C$53.13 billion ($39.8 billion). December was also
revised up to a 1.4 percent gain.
While some of the month's increase was due to the
depreciation of the Canadian dollar, which can increase prices,
volumes were robust with a 2.4 percent increase. Volume levels
were at their highest since before the 2008-2009 recession.
Sales of vehicles surged 9.6 percent, the biggest increase
since March 2015. The weaker Canadian dollar and a shift toward
production of higher-end, more expensive models boosted the
sector. Vehicle parts sales rose for the fifth consecutive month
with a 4.0 percent increase.
Food sales rose 4.6 percent with the volume of food sold the
highest in more than 10 years. The report noted that the food
industry is usually one of the more stable industries in the
manufacturing sector.
The overall increase in sales could boost economic growth
expectations for the month. After better-than-anticipated growth
in the fourth quarter, analysts already expect the economy could
exceed the Bank of Canada's 1 percent growth forecast in the
first quarter.
($1 = $1.3358 Canadian)

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