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Key Insights: Manufacturing sales & Consumer Price Index

Courtesy of the The Conference Board of Canada

The latest Economic Quick Takes from The Conference Board of Canada are available now.

Here are highlights and key insights into Statistics Canada’s February 16 manufacturing sales and Consumer Price Index releases:

Sales growth in December ends a difficult year for Canadian manufacturers. Canadian manufacturing sales rose by 0.7 per cent (m/m) in December. This was slightly lower than Statistics Canada’s flash estimate, which called for a 0.8 per cent increase. After accounting for price effects, manufacturing sales rose by 0.6 per cent.Sales grew in 11 of the 21 manufacturing subsectors. Sales of leather and allied products (+13.7 per cent) and plastics and rubber products (+11.8 per cent) grew the most. Meanwhile, clothing manufacturing sales (-9.2 per cent) saw the sharpest decline.Manufacturing sales grew in 7 of 10 provinces, with Manitoba (+7.2 per cent) and Prince Edward Island (+3.3 per cent) registering the strongest gains. Sales fell in Newfoundland and Labrador (-6.9 per cent), Quebec (-1.2 per cent) and Saskatchewan (-0.4 per cent).New orders increased by 1.4 per cent, while unfilled orders grew by 1.7 per cent.Here’s our take on what we may see in the coming months for manufacturing sales.
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Consumer Price Index
Discussed always and everywhere nowadays, inflation climbs in January In January, the Consumer Price Index (CPI) rose by 5.1 per cent (y/y), the largest year-over-year increase since September 1991.
Gasoline prices rose 4.8 per cent (m/m).
Meanwhile, year-over-year food prices were up 5.7 per cent.
Excluding food and energy, the CPI climbed by 3.5 per cent (y/y) in January. Year-over-year prices were higher in all eight major CPI components.
The transportation (+8.3 per cent) and shelter (+6.2 per cent) components contributed most to the increase in the CPI.On a seasonally adjusted monthly basis, the CPI went up 0.6 per cent in January (0.3 per cent in December).

The average of the Bank of Canada’s three core inflation measures bumped up to 3.2 per cent in January from 3.0 per cent in December. CPI-trim increased to 4.0 per cent, CPI-median grew to 3.3 per cent, and CPI-common moved up to 2.3 per cent.We take a closer look at what’s impacting the CPI in January, and what factors are likely to play a role in February. 
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Patricia Dent
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