Manufacturing sales up 2% in October December 18, 2009
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Manufacturing sales advanced two per cent in October to $42.5 billion, the fourth increase in five months. (Canadian Press)
Manufacturing sales advanced two per cent in October to $42.5 billion, the fourth increase in five months.
Even with these recent gains, manufacturing sales remained 16.6 per cent below October 2008 figures, Statistics Canada said Wednesday.
Most of October’s manufacturing gains were focused in two industries ? aerospace product and parts, and petroleum and coal products, the data agency said.
In constant dollar terms, manufacturing sales rose 1.2 per cent in October, also the fourth increase in the past five months.
Sales advanced in 15 of the 21 manufacturing industries, accounting for about 72 per cent of total sales.
Aerospace production advanced 54.1 per cent, while petroleum and coal product sales rose 7.2. Aerospace sales have been particularily volatile this year, Statistics Canada said.
Motor vehicle sales increased 2.9 per cent in October. The industry has reported higher sales in three of the past four months. Fabricated metal products led declines, losing 4.4 per cent in October.
Regionally, Quebec was a leader, as sales were up 7.3 per cent on the month, reaching the highest level since December 2008.
Excluding Quebec, manufacturing sales were basically flat, rising 0.2 per cent, Statistics Canada said.
Statistics Canada also revised its manufacturing sales growth figure for September downward, to one per cent from 1.4.
McGuinty won’t rule out asset sales December 18, 2009
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Ontario Premier Dalton McGuinty said Wednesday he won?t rule out selling off provincial Crown corporations.
The premier was responding to questions from journalists about a Toronto newspaper’s report that his government had hired investment bankers to come up with a plan for selling assets. They include Ontario Lottery and Gaming Corp., power companies Hydro One and Ontario Power Generation, and the Liquor Control Board of Ontario, which has a monopoly on liquor retailing through 604 outlets in the province.
The report says one asset that could be up for sale is the Liquor Control Board of Ontario.(Canadian Press)
“We’ve got a responsibility to take a look at all of our assets and to make sure we’re getting the most bang for the buck, and especially now in the context of a global recession, and a significant deficit and our shared responsibility to find our way forward,” McGuinty said.
“We’ve got a committee in place and their job is to come up with some ideas, to tell us what best serves the interests of Ontarians. What always guides us is our determination to do, to try to do, the right thing for Ontarians and that will continue to guide us as we consider the future of assets,” he added.
It?s a reversal for McGuinty, who opposed the previous Conservative government?s bid to sell off electricity assets or Highway 407, but said things have now changed because of the recession.
The province is facing a deficit of $24.7 billion this year and McGuinty said he has to consider all options to deal with it.
The Opposition Conservatives were already criticizing McGuinty for a “fire-sale approach,” or selling the assets at the bottom of the market. However, they said that in principle, they are not opposed to privatization.
The New Democrats said public asset sales are an “old and tired idea,” and warned that taxpayers always get a bad deal.
The Globe and Mail report said the government has hired CIBC World Markets and Goldman Sachs Group Inc. That plan was due to be completed in the next couple of months.
New Brunswick announced in October an agreement to sell most of its stake in the provincial power utility, NB Power, to its Quebec-owned counterpart, Hydro-Québec, for $4.8 billion to reduce debt.
Ontario proposed selling shares in Hydro One, a power transmission company, in 2001, but that stalled in part because of a court challenge launched by unions.
U.S. retail sales show gain in November December 11, 2009
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U.S. consumers picked up their spending in November, according to statistics released by the U.S. Commerce Department Friday.
Retail sales rose 1.3 per cent in November, up from the 1.1 per cent improvement in October.
U.S. retail sales rose for the fifth month in the last seven in November.(Paul Sakuma/Associated Press) “This was a surprisingly strong report and suggests that U.S. consumers are slowly regaining their spending mojo,” Millan Mulraine, an economics strategist with TD Securities, said in a commentary.
Consumer spending is a major part of American economic activity and a closely watched indicator of economic recovery.
The rise in sales was the fifth gain in the last seven months. Excluding autos and gasoline purchasing, which are more volatile, so-called core retail sales were up 1.2 per cent. That suggests “strong momentum,” said Mulraine.
All the same, with unemployment still high, Mulraine predicted a more modest increase in consumer spending in the months ahead.
With files from The Associated Press (more…)
Winnipeg real estate sales set record December 8, 2009
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The Winnipeg real estate market set a record for the value of homes sold in November, totalling $166.3 million.
That was a 42 per cent increase over November 2008, which rang in at $116.9 million, according to the Winnipeg Realtors Association (WRA).
In terms of the number of properties sold, the WRA said November 2009 was the second best in the association’s 106-year-history.
The statistics are a dramatic improvement over the same time in 2008, when one of the worst sales months was recorded and the fear about the recession was at its height.
A total of 837 properties were sold through the Multiple Listing Service (MLS) in November 2009, an increase of 28 per cent over the previous year when 656 properties were sold, the WRA stated in a press release.
Only November 2007 was better for sales, and that was by only 43 properties.
Peter Squire, a market analyst for the Winnipeg Real Estate Board, chalks up the spike to low interest rates, growing consumer confidence and an array of attractions that make Winnipeg a more desirable city in which to live.
?Our unemployment numbers in November show that we’re virtually tied with Saskatchewan for the lowest unemployment in the country. And . . . there are a lot of projects and a lot of exciting things happening like the [construction of the] human rights museum and the Ikea development,? he said.
The average days on the market for sales of residential detached listings in November 2009 was 29, three days quicker than this time last year.
Wholesale sales inch up in September November 20, 2009
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Wholesale sales edged up 0.2 per cent in September after a 1.5 per cent decline in August, Statistics Canada revealed Thursday.
Higher sales of machinery, electronic equipment, food, beverages and tobacco products sector offset weakness in the automotive products sector, the agency said.
Excluding automotive products, which fell 1.9 per cent, sales rose 0.6 per cent. Within the automotive sector, sales of vehicles themselves were two per cent lower.
In volume terms, overall wholesale sales were up 0.3 per cent.
Overall, four of seven sectors increased during the month.
The largest increase came in the machinery and electronic equipment sector, which rose 1.2 per cent in September.
Following a 2.2 per cent decline in August, wholesalers in Ontario reported increased sales in September. The province, which accounts for about half of Canada’s total wholesale sales, saw an increase of 1.2 per cent.
Wholesale sales fell in all four western provinces, with the largest declines in Saskatchewan and Manitoba, at 4.1 and 3.4 per cent, respectively.
Inventories decline
Wholesale inventories fell 0.9 per cent to $55 billion in September, the seventh consecutive monthly decline. Overall, eight of the 15 wholesale trade groups reported lower inventory levels in the month.
The increase in sales, combined with the decrease in inventories, translated into a decline in the inventory-to-sales ratio from 1.35 in August to 1.34 in September. That represents the lowest level for the metric since November 2008.
The inventory-to-sales ratio is a measure of the time in months required to exhaust inventories if sales were to remain at their current level.
Loblaw profit up on flat sales November 17, 2009
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Loblaw Cos. Ltd. posted 20 per cent higher profits in the latest quarter despite flat sales, thanks to improved supply chain efficiencies at the grocery chain.
Canada’s largest supermarket operator said Tuesday it earned net income of $189 million or 69 cents a share for the quarter ended Oct. 10.
Jasmin Monroe wheels groceries out of the Loblaws store in Brossard, Que. The company posted improved earnings on flat sales Tuesday.(Ryan Remiorz/Canadian Press)
That was well above last year’s level of $157 million or 57 cents per share.
Total revenue came in at $9.47 billion for the quarter, compared with $9.49 billion last year.
The profit bested Bay Street expectations of 62 cents per share before one-time items, but revenue was short of the $9.62 billion that analysts polled by Thomson Reuters were expecting.
And the company warned that sales and profit margins face continuing challenges from slack food-price inflation, intense competition and long-term infrastructure and renovation spending.
Loblaw, whose banners include No Frills, Zehrs, Fortinos and Real Canadian Superstores, said the quarter’s bottom line was negatively affected by a one-time charge of $25 million related to an information technology and supply chain investment.
“As we progressed through the third quarter, our sales were increasingly impacted by the significant decline in inflation and the ramp-up of our pricing investments,” executive chairman Galen Weston Jr. said.
Same-store sales fell 0.6 per cent in the quarter despite Thanksgiving holiday sales that helped boost the top line, the company said.
Loblaw recently acquired Asian-focused T&T Supermarket Inc. for $225 million. That transaction closed during the recently completed quarter but was not a factor in earnings, the company said.
U.S. October retail sales climb November 16, 2009
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Auto sales pushed U.S. retail sales to a 1.4 per cent gain in October, the Commerce Department reported Monday.
New car sales were up 7.4 per cent, on a recovery after sales plummeted in September, following the expiry of the government’s Cash for Clunkers purchase incentive program.
Statistics suggest more consumers are moving to discount stores.(Paul Sakuma/Associated Press)
Excluding autos, retail sales rose 0.2 per cent, raising concerns about the vigour of the economic recovery. Consumer spending accounts for 70 per cent of total economic activity in the U.S.
The government also revised its retail sales figure for September, to 2.3 per cent from the 1.5 per cent reported earlier.
Furniture store sales fell 0.8 per cent. and electronics and appliances were off 0.6 per cent. Gasoline stations reported flat sales and grocery outlets a 0.2 per cent gain.
Department store sales rose 0.3 per cent, but sales at discount chains were up 0.8 per cent, supporting the belief that more consumers turn to discounters during downturns.
Millan Mulraine, economics srategist at TD Securities, said the report showed U.S. consumer spending is “slowly getting back on track, heading into the crucial holiday shopping season.”
He noted this was the fourth monthly advance in retail sales in six, but with the jobs market still weak, predicted the rate of recovery to remain “relatively slow” and for the Federal Reserve to stick with its decision not to raise interest rates until early 2011.
Homes sales to beat 2009 forecast: CREA November 16, 2009
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The Canadian Real Estate Association has revised its 2009 sales forecast up for a second time.(Geoff Howe/Canadian Press)
National MLS home sales will likely exceed forecasts for 2009 and 2010 after a monthly record was set in October, the Canadian Real Estate Association says.
National activity will reach 460,200 units in 2009, up 6.6 per cent from last year, CREA says, and it is expected to rise seven per cent to 492,300 units in 2010, according to a news release.
CREA, which owns the Multiple Listing Service, initially forecast in August that 2009 sales would be down slightly compared with 2008 levels, with 423,600 units changing hands.
It’s the second time the agency has boosted its forecast. In May, it predicted sales would decline by 14.7 per cent.
“Significant weakness in activity and average prices seen in late 2008 and earlier this year is not expected to repeat in 2010, so 2010 will look a lot better by comparison,” CREA chief economist Gregory Clump said in a news release.
The association has also upwardly revised its house price forecast, saying the average home price should climb 4.2 per cent in 2009. It originally forecast that prices would rise by just 1.5 per cent.
Alberta remains the only province where prices are forecast to decline. CREA predicts prices there will fall three per cent in 2009.
Average prices are forecast to rise in all other provinces, with gains ranging from a low of 1.5 per cent in British Columbia to 13.1 per cent in Newfoundland and Labrador.
Cars buoy September manufacturing sales November 16, 2009
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Gains in the automobile industry helped manufacturing sales rise 1.4 per cent to $41.7 billion in September, Statistics Canada said Monday.
Car sales rose 16.4 per cent in September to $3.8 billion for the month, their highest level since September 2008.(Canadian Press)
After dropping to a recent low of $38.5 billion in May, sales have now increased in three of the last four months.
Despite the recent gains, manufacturing sales remained 18.6 per cent below September 2008 levels, the data agency said.
Motor vehicle sales increased by 16.4 per cent to $3.8 billion during the month, the highest level since September 2008. Sales had fallen to as low as $1.6 billion in January 2009 amid extended plant shutdowns and poor market conditions.
Motor vehicle parts sales gained 13.7 per cent in September, reflecting rising motor vehicle production.
Sales advanced in 14 of the 21 manufacturing industries the survey monitors, but excluding motor vehicles, parts and accessories, total manufacturing sales edged down 0.4 per cent during the month.
Inventories fall
Inventory levels fell for an eighth consecutive month, decreasing 1.9 per cent in September to $59.9 billion. That marks the lowest level for inventory stockpiles since February 2000.
The inventory-to-sales ratio decreased to 1.44 in September, down from 1.49 in August. September’s rising sales and falling inventory levels pulled the ratio down to the lowest level since November 2008. The inventory-to-sales ratio ? a measure of the time in months required to exhaust supplies at current levels ? had recently been as high as 1.63 last May.
U.S. home sales take surprise drop October 28, 2009
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Sales of new U.S. homes dropped by an unexpected 3.6 per cent last month, government data shows.
A sign indicates a cut price for a home in East Palo Alto, Calif., last year. After troughing in January, U.S. home sales have revived in recent months.(Paul Sakuma/Associated Press)
The U.S. Commerce Department said Wednesday that sales fell to a seasonally adjusted annual rate of 402,000 from a downwardly revised 417,000 in August. August’s sales had been initially tallied at 429,000.
Economists surveyed by Thomson Reuters had expected a pace of 440,000 sales for September.
It was the first decline since March. The September sales total was off 7.8 per cent from a year ago, although it was up 22 per cent from the market’s January bottom.
It is still down more than 70 per cent from the peak of July 2005.
The median sales price of $204,800 US was off 9.1 per cent from $225,200 a year earlier. However, the median price ? half of homes sold for more, half for less ? was up 2.5 per cent from August’s $199,900.
The decline in the number of sales was driven by drops of nearly 11 per cent in the West and 10 per cent in the South. Sales rose 35 per cent in the Midwest and were unchanged in the Northeast, the Commerce Department said.
“Even though today?s report on new home sales disappointed expectations of continued improvement, the level of sales remains well above the trough of 329,000 set in January of this year,” RBC economist Josh Heller said.
The year-over-year decline does not alter the bank’s view that residential real estate will make a positive contribution to third-quarter economic growth, he said.
Tax credit expiring
The report reflects contracts to buy homes, not completed sales. Would-be buyers have had a harder time obtaining mortgages and getting properties appraised since last year’s credit crunch, which has made transaction closings take longer.
If deals are not completed before a Nov. 30 deadline, buyers are unable to take advantage of a tax credit of up to $8,000 for first-time buyers. That’s playing a role in the figures, economists suggest.
‘The pullback could be quite significant’?Brad Hunter, Metrostudy economist
The report “demonstrates the power of the first-time homebuyers tax credit,” said Bernard Markstein, senior economist with the National Association of Home Builders, which has been lobbying Congress to extend and expand the tax incentive. “We just haven’t gotten the economy back to the point where we can step back and say the housing market doesn’t need any more support.”
Congress is considering extending the tax credit through March 31 and gradually phasing it out over the rest of next year. “If they don’t extend it, then I think the pullback could be quite significant,” said Brad Hunter, chief economist with Metrostudy, a real estate research firm.
Critics, however, say many buyers would have entered the market anyway and call the credit a subsidy for people who don’t need it.
Low mortgage rates, the tax credit and more affordably priced homes have provided a lift to the housing market this year. Sales of previously occupied homes jumped more than nine per cent in September. That report measures completed sales rather than sales agreements.
The government counted 251,000 new homes for sale at the end of September, down almost four per cent from August and the lowest inventory in nearly 27 years. At the current sales pace, that represents 7.5 months of supply, flat for the second straight month.
With files from The Associated Press (more…)
