16 Feb 2016
CAD: Setting up for manufacturing sales – TDS
Research Team at TDS, suggests that the momentum in the Canadian manufacturing sector is set to continue into December with a forecasted 0.8% m/m increase in headline sales.
Key Quotes
“The transportation sector is expected to have played a large role, reflecting stronger auto exports and domestic production as well as a currency valuation effect that will boost sales of aerospace products. On the other side of the ledger, a sharp decline in energy prices will weigh on production of petroleum and coal products, though flat exports suggest that the pullback in sales may not be as pronounced as the price data would suggest.
Manufacturing volumes are expected to be close to the nominal advance as outside of the drop in energy most other industrial prices were higher to end the year. Stepping away from the details, this report stands as a microcosm of the challenges facing the wider economy as ongoing difficulties in the resource sector are being partially offset by improvements in the more traditional manufacturing industries.”
Key Quotes
“The transportation sector is expected to have played a large role, reflecting stronger auto exports and domestic production as well as a currency valuation effect that will boost sales of aerospace products. On the other side of the ledger, a sharp decline in energy prices will weigh on production of petroleum and coal products, though flat exports suggest that the pullback in sales may not be as pronounced as the price data would suggest.
Manufacturing volumes are expected to be close to the nominal advance as outside of the drop in energy most other industrial prices were higher to end the year. Stepping away from the details, this report stands as a microcosm of the challenges facing the wider economy as ongoing difficulties in the resource sector are being partially offset by improvements in the more traditional manufacturing industries.”