Canadian manufacturing sales fell in September as chip shortage hurt auto sector

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Canadian manufacturing sales fell three per cent to $58.5 billion in September as motor vehicle sales fell due to the ongoing shortage of semiconductors that has hurt auto production.

sales of motor vehicles fell 35.6 per cent to $1.9 billion, the lowest level since May 2020, while sales of motor vehicle parts dropped 13.5 per cent to $1.8 billion.

Stephen Brown, senior Canada economist at Capital Economics, said renewed closures of auto plants weighed heavily on manufacturing sales in September. The auto sector has been hit hard by the global shortage of semiconductor chips due to pandemic-related production issues and a surge in demand for electronics. The shortage has forced auto producers to slow or halt production around the world.

Total manufacturing sales in constant dollars fell 4.2 per cent in September, indicating a lower volume of goods sold.

 

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