Canadian manufacturing shipments contract again in June

Sharp declines in the motor vehicle and computer and electronic product industries were the main reason for the decline, the monthly decrease reported for 2001. Overall, shipments in the first six months of 2001 have decreased 2.1% compared to last year.

Shipments in 16 of 21 industries representing 83% of the total shipments, decreased in June, according to Statistics Canada. Five provinces reported lower shipment values as well.

According to the recent release of the July 2001 Business Conditions Survey for Manufacturing, manufacturers still expected some reduction in production for the coming three months but were mildly less pessimistic than in the previous quarter.

Inventories edged up 0.1% to $65.5 billion in June, as finished-product inventories rose for the fourth time in six months. Meanwhile, unfilled orders slipped 0.6%, led by diminishing orders for the aerospace product and parts and computer and electronic products industries.