Consumer appetite for new cars and trucks held steady in April following a hefty March rebound. Total sales edged slightly lower by 0.6% to 15,800 seasonally adjusted units. Despite the decline, demand has recovered from an early-year slump and is back in line with the trend observed in the second half of 2013. Stronger sales over the past two months kept year-over-year growth above water by about 1% over the first four months of the year.
Auto sales data is a secondary indicator for British Columbia's economy, unlike Ontario's, given the small manufacturing footprint west of the Rockies. However, trends provide some guidance for the state of consumer demand for durables. An upshift in auto sales suggests some improvement in consumer spending levels in the second quarter, which should translate into solid retail numbers next week.
B.C.'s manufacturing sector posted solid growth in April that far exceeded the national performance. Manufacturing shipment volumes rose 2.8% to a seasonally adjusted $3.46 billion, compared to a slip at the national level of 0.1%. However, April's gain likely reflected a sector playing catch-up after two months of declines. The impact of the Port Metro Vancouver strike has influenced recent monthly figures due to lost or delayed sales as well as supply-side bottlenecks. National growth outpaced B.C. in both February and March.
Despite some early-year volatility, year-to-date manufacturing sales are trending comfortably ahead of year-ago levels by more than 3%. While sub-industry data is somewhat sparse, growth is being led by a 10% gain in the non-durables sector, with paper manufacturing shipments leading the way. Durable goods shipments are down 2%, led by wood products and primary metals.
