OTTAWA – Canadian production sales climbed a record 20.7 percent in June to $487 billion as production returned following prevalent shutdowns earlier in the year, Statistics Canada reported Friday.
The boost was led by the automobile and automobile parts industries and followed a modified gain of 11.6 per cent in May, up from a preliminary reading of 10.7 percent for that month.
Economic experts typically had actually expected a boost of 16.4 percent for June, according to financial markets data company Refinitiv.
Royal Bank senior economist Nathan Janzen said much of the preliminary recovery in making sales to-date, as in the broader economy and labour markets, is because of its return from unprecedented decreases in April.
” Beyond this initial bounce, the pace of recovery will still likely moderate,” Janzen composed in a brief report.
” The near-term bounce-back in economic activity has been motivating, but the economy is still operating well below capacity, and most likely still will be at the end of the year.
In volume terms, producing sales increased 18.4 percent in June.
Sales in the transportation devices industry more than doubled to $8.8 billion in June as most factories in the automotive sector returned to complete production following shutdowns previously in the pandemic.
Sales in the petroleum and coal item market also increased by 31.5 percent to $3.3 billion in June due to greater rates and volumes as refineries ramped up production.
Despite the gains, total production sales in June were 13.2 percent listed below their pre-pandemic level in February.
Manufacturing sales in the second quarter amounted to $1253 billion, down from $1624 billion in the first quarter of the year, record 22.8 per cent drop.
Stats Canada said the total for the second quarter was the most affordable since the 3rd quarter of 2009 towards completion of the financial crisis.
In volume terms, manufacturing sales fell 20.5 percent in the 2nd quarter.