Canada manufacturing gross sales for July 2.5% versus 1.8% estimate

• Manufacturing sales prior month 0.3%
• Manufacturing sales for July 2.5% versus 1.8% estimate

Canada Wholesale Trade statistics for July:

• Prior month 0.7%
• Wholesale trade 1.2% vs 1.3% estimate

• Subsector gains: 4 of 7 subsectors rose, covering ~75% of wholesale trade

  • Motor vehicles & parts: +5.1%

  • Building materials & supplies: +2.7%

• Year-over-year: +4.3% vs July 2024

• Volume terms: +0.8% in July

Details of the manufacturing sales shows:

• Transportation equipment sales rebounded +8.6% to $11.4B in July after four monthly declines.

  • Motor vehicles: +11.4%

  • Motor vehicle parts: +7.2%

  • Aerospace products and parts: +6.5%

  • Seasonal shutdowns in Ontario were less pronounced this year due to a broader production slowdown linked to new US tariffs.

  • Exports of motor vehicles and parts rose +6.7%.

  • Aerospace manufacturers showed stronger-than-usual July output, reflecting solid demand.

• Petroleum and coal product sales increased +6.2% to $7.2B in July (after +11.6% in June).

  • Growth driven by ramp-up in refined petroleum production after April–May refinery shutdowns.

  • Sales in constant dollars: +4.5%.

  • Year-over-year sales: -12.7% despite recent gains.

• Total inventories rose +0.8% to $121.2B in July.

  • Goods in process: +2.0%

  • Raw materials: +1.0%

  • Finished products: -0.5%

  • Machinery: +3.8%

  • Petroleum & coal products: +2.6%

  • Miscellaneous manufacturing: -10.3%

• Inventory-to-sales ratio fell to 1.72 from 1.75 in June, indicating slightly quicker turnover.

• Unfilled orders edged down -0.1% to $112.3B, with notable declines in miscellaneous manufacturing (-14.1%) and plastics & rubber (-9.0%).

The Bank of Canada will meet this week and announce its interest rate decision at 9:45 AM ET on Wednesday. The central bank is expected to cut rates by 25 basis points.

This article was written by Greg Michalowski at investinglive.com.