Canada's manufacturing sector ends 2015 on a bright note

Canadian manufacturing sales rose for a second consecutive month in December to end the the year on a bright note.  Nominal sales were by 1.2%, while volumes rose by 1.3%. The inventory to sales ratio fell to 1.40 (previously 1.44) as inventories slipped 1.6% during the month.

Sales of wood products which showed an impressive 5.5% rise, the highest level seen since 2006 is seen as the main reason behind the rise. Motor vehicles sales also contributed, up 3.6%, rising for a third straight month.  On the flipside, sales of petroleum and coal products were down 2.4%.

"Despite the increased momentum in manufacturing sales to close out the year, the weak handoff from the third quarter means that the sector will be a drag on growth in the fourth quarter, which is currently on track for a flat performance.  That said, manufacturing entered 2016 with some steam, which we expect to continue going forward, particularly in the non-commodity based industries." said TD Economics in a report.