Canadian manufacturing sales likely to have grown softly in October

Canadian manufacturing sales data for the month of October is set to release tomorrow. According to a TD Economics research report, the manufacturing sales are likely to have risen 0.1 percent in October as a huge drag from motor vehicles counters strength elsewhere.

Motor vehicle production dropped sharply in October and auto part exports dropped by almost 12 percent on the month as Canadian plants felt the effect of the UAW strike in the U.S. Elsewhere, increased petroleum prices might provide a tailwind to nominal refinery sales while a sharp rise in exports of chemical products implies another source of strength.

“Forest products should weigh on the headline print along with motor vehicles, owing to ongoing weakness at Canadian lumber mills, while real manufacturing sales should match the nominal increase with factory prices largely unchanged”, added TD Economics.