Canadian manufacturing sales likely to have dropped again in August, says TD Economics

Canada’s manufacturing sales are expected to have dropped for the third straight month in August. According to a TD Economics research report, the nominal sales are expected to have dropped 0.1 percent sequentially in the month of August. Following a sharp decline in output, owing to the retooling shutdowns, factory shipments of motor vehicles are likely to see a partial recovery in August.

But, this report in unlikely to show any ongoing labor disputes, which would restrict any additional rebound in September. Outside of the transportation sector, the subdued export data and a wide drop in hours worked indicate towards a weak report, although increasing petroleum prices would help to underpin nominal refinery sales. Real manufacturing sales are expected to have underperformed the nominal print because of higher factory prices, added TD Economics.

At 12:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was highly bearish at -169.034, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -23.9814. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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