One-quarter of manufacturers expect to increase production

Some 25% of manufacturers expected to increase production in the second quarter, according to recent survey conducted by Statistics Canada. That’s up from 18% in January.

The voluntary survey, to which almost 4,000 responded, found that the proportion of those expecting to reduce production in the next three months fell from 30% in January to 19% in April.

The balance of opinion for production prospects rose 18 points from January to +6. This is the first positive production balance since October 2000 (+3).

The balance of opinion is determined by subtracting the proportion of manufacturers that stated their finished product inventory was too high from the proportion whose finished product inventory was too low.

Producers in the transportation equipment, primary metals and wood product industries were feeling more upbeat about production prospects in the second quarter.