As with all sectors of the economy, manufacturing sales took a deep plunge during March and April in Canada. But, they started to reverse in May and June, and posted another strong increase for July, as per yesterday’s report, although sales still remain below the February levels. Nonetheless, this is one positive factor to keep in mind for the CAD.

 Canadian manufacturing sales data for July 

• July manufacturing sales +7.0% vs +9.0% expected
• June manufacturing sales was +20.7%, revised to 23.0%
• Core sales, excluding autos, came in at +3.1% vs +12.8% prior
• New orders +9.0% vs +24.8% prior
• Sales up in 13 of 21 industries, led by autos (+24.1% in July)
• Unfilled orders -1.2%
• Inventories -0.8% to lowest level since Feb 2019
• Manufacturing employment at 93.6% of Feb level