Sunday, 6 Oct 2024

Canada March factory sales slump by the most in over 11 years

OTTAWA (Reuters) – Canadian manufacturing sales in March slumped by 9.2%, the biggest drop in over 11 years, as the coronavirus pandemic forced the shutdown of many businesses, Statistics Canada said on Thursday.

Analysts in a Reuters poll had forecast a drop of 5.7% in March. Of the 21 industries monitored by the statistical agency, 17 reported declines.

The plunge in sales was the greatest since December 2008, during the great recession. More than three-quarters of firms in the manufacturing sector said their activities had been affected by shutdowns.

“Given ongoing lower demand, together with continued challenges to global supply chains and ongoing physical distancing measures, the March decline in sales is expected to continue into April,” Statscan said in a commentary.

Sales in the transportation equipment industry sank by 26.5%, pulled down by a 33.8% crash in sales of motor vehicles. Sales declined for the third consecutive month in the petroleum and coal product industry, plunging 32.2%.

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