Canadian manufacturing sales likely fell sharply in March

Canadian manufacturing sales data for the month of March is set to release tomorrow. According to a TD Economics research report, manufacturing sales are likely to have dropped 6 percent, consistent with the softness in merchandise exports.

While production was greatly impacted for the initial two weeks of March, an escalation of emergency measures will be a drag on the monthly totals. Major automakers started to suspend production on 18th March and on 23rd March Ontario ordered all non-essential firms closed.

“Due in part to that timing, we look for transportation equipment to lead the decline while food products, which make up 16 percent of all manufacturing activity, should provide a partial offset”, added TD Economics.