Manufacturing unexpectedly rises in September: StatsCan

Canada's manufacturers posted an unexpected sales increase of 0.1 per cent in September, according to figures released by Statistics Canada on Friday.

Amid the country's current dismal economic climate, that feeble growth rate passed for an "upside surprise," in the words of one expert.

Canada's manufacturers sold $52.163 billion of goods in the month, slightly higher than the $52.088 billion these same firms pushed out the factory gate in August.

Even though the September increase barely moved the needle on the sales growth meter, the monthly performance was a markedly better showing than the 1.5 per cent drop analysts had expected.

In effect, Canadian goods producers sold $845 million more in September than economists forecast.

More impressively, September's positive showing came on the heels of a drop in manufacturing sales in August, a major factor in the negative sentiment for this sector.

"The upside surprise came after a hefty 3.7 per cent drop in August, but a very strong growth period from April through July, when sales posted increases that marked the strongest four-month string since late 1998," said RBC Economics in a commentary on the economy.

Additionally, if price changes are subtracted, Canadian manufacturers sold 0.7 per cent more goods in the month on a constant dollar basis. That is because industrial product prices fell rather than increased in September, Statistics Canada said.

More groups with more sales

Thirteen out of the country's 21 industry subsectors grew their sales in the month, led by transportation equipment.

Statistics Canada said higher sales by aerospace companies, up 1.1 per cent, were a key contributor to September's performance.

Earlier in the week, Export Development Canada highlighted the aerospace sector as an industry that will lead the country's export performance in 2009.

Five of Canada's 10 provinces experienced higher manufacturing sales in the month. Ontario, however, which accounted for 46 per cent of the country's goods revenue in September, lost ground as sales slipped 0.9 per cent.

The worst provincial performer was New Brunswick, where manufacturing sales were down 10.5 per cent in the month. Alberta posted the biggest gain, up 4.2 per cent in September.