Despite nationwide gains in manufacturing, sales on the B.C. side of the sector dropped 2.2% in March, according to Statistics Canada.
Data released Friday (May 15) shows manufacturing sales in B.C. fell from $3.74 billion to $3.66 billion between February and March. It’s the second time in three months sales in the province have been on a downward trajectory.
The statistics agency said the decline on the West Coast has been spurred by less demand for non-durable goods.
Across Canada, however, greater demand for products coming out of the transportation sector helped boost manufacturing sales 2.9% month-to-month to $51 billion.
And despite Montreal-based Bombardier (TSX:BBD.B) laying off 1,750 workers on May 14, production in the aerospace industry rose 42.3% in March.
“The big gain in manufacturing volumes is an encouraging sign for March GDP following a very difficult start to the year for the Canadian economy. However, manufacturing volumes still fell at an 8% annualized pace in (the first quarter of 2015), the worst reading in four years,” BMO senior economist Benjamin Reitzes wrote in a note to investors, adding Canada should expect more modest growth in the coming months.
“There may not be much more upside in aerospace (see Bombardier recent layoffs), and growth in autos is likely limited by capacity constraint, so don’t expect continued big gains on that front.”
