Aerospace, auto industries show strong Q1 growth: Statistics Canada

Canadian manufacturing sales increased 1.9% in March to $47.5 billion, Statistics Canada reports. Sales were up in nine provinces, reflecting renewed growth in a wide range of industries, especially aerospace parts and products.  

The transportation equipment industry accounted for just over half of the gain with a 6.3 per cent rise in sales.

Large gains were made in the aerospace product and parts industry, where production rose 20.6% to $1.4 billion. In Quebec, where much of Canada's aerospace industry is located, gains were even stronger in that sector.

Sales in the motor vehicle industry advanced 4.1%, as a result of increases reported by most auto assembly plants.

In Alberta, stronger sales (3.7 per cent) were seen in the chemical industry and agricultural, construction and mining equipment.

Ontario's auto industry showed a 4.7 per cent increase and that drove sales up a slight 0.1 per cent, to $21.4 billion.

There was strong growth in unfilled orders as well, again driven mainly by aerospace, where unfilled orders in March stood at $26.5 billion, up $4.8 billion form February.

Though the picture is positive now, analysts caution that Japanese supply shocks on global industry could have an adverse effect on second quarter numbers.