On Friday we confirmed that Canadian manufacturing sales declined 3.1% in December to $48.0 billion, the largest decline since May 2009. Sales decreased in 16 of 21 industries, representing 82% of the manufacturing sector. Durable goods sales were down 4.2% while non-durable goods sales declined 2.0%. More than two-thirds of the decline in Canadian manufacturing sales was concentrated in Ontario. It is important to note this weakness appeared in Q4 2012, before the deceleration of Q1 2013. The Canadian dollar this morning has broken the support trend it had held since the QE’finity promises from central banks in the summer of 2011. Decoupling from the global downturn, Canada is not.
Chart source: Cory Venable, CMT, Venable Park Investment Counsel Inc.