Economists are gaining confidence in Canada’s manufacturing sector. February was a particularly strong month for auto and energy manufacturing. The latest numbers show the country may be on its way out of the economic slump that has weighed heavily on all its industries since 2008.According to a Reuters report, “Sales gained 1.4 percent versus expectations for a 1.0 percent increase, helped by higher auto industry sales and by higher energy prices, Statistics Canada data showed on Tuesday. Statscan revised down January’s sales increase to 0.8 percent from 1.5 percent, however.”
Analysts are calling the latest peak in numbers “pre-recession.” Several sectors are quickly rising as their sales grow within an already escalating economy.
Huffington Post Canada notes, “Transportation equipment sales rose 4.3 per cent to $8.9 billion, while sales in the petroleum and coal product industry increased 2.9 per cent to $7.5 billion.”
Petroleum followed the trend in transportation equipment as well. The Wall Street Journal states, “Sales in the petroleum and coal products industry rose 2.9% to C$7.53 billion, the highest level since March 2012, as prices rose 2.5%. These gains were partly offset by widespread declines in the food, computer and electronic products, and wood product industries.”
The manufacturing industry’s recession history is one of many lows and slight highs spread out over several years. The worst numbers came out of 2009 when many manufactures had to cut back production to help reduce their deficit.
The Financial Post Reports, “Since hitting bottom midway through 2009, output by Canadian manufacturers has increased by a meager 10 percent. That’s half as much as the upturn seen in the United States. In the process, the number of manufacturers in this country shrank by 20 percent, while the sector’s share of gross domestic product fell by 12 percent.”
Economists are hopeful that Canada’s April numbers will continue the upward trend.