(Adds details from report, economic context)
OTTAWA, Aug 14 (Reuters) - Canadian manufacturing sales
jumped in June on increased sales of chemical products and motor
vehicles, data from Statistics Canada showed on Friday,
providing a welcome sign of activity in the economy at the end
of the second quarter.
Factory sales rose 1.2 percent, the biggest gain since
March, though sales still fell short of economists' forecasts
for a more robust gain of 2.1 percent. It was the second monthly
increase. In volume terms, sales rose 0.5 percent.
New orders rose by 0.6 percent, while companies continued to
draw down their inventories, which fell 0.5 percent. The
inventory-to-sales ratio fell to 1.42 from 1.44 in May.
Sales were higher in 18 of 21 industries, which accounted
for 80 percent of the manufacturing sector. Chemical products
climbed 5.4 percent and motor vehicle sales gained 4.2 percent.
The economy may have been in recession in the first half of
the year and the Bank of Canada has cut interest rates twice in
2015 so far as the oil-exporting country has felt the pain of
cheaper crude prices.
The manufacturing sales report follows data earlier this
month that showed the export sector snapped back in June.
The two reports could provide support to the
view that the economy will pick back up in the second half of
the year.