Manufacturing sales fell 2.1% in April as chip shortage hurt auto industry

Statistics Canada says manufacturing sales fell 2.1 per cent to $57.1 billion in April as the auto industry was hurt by a continued shortage of semiconductor chips that prompted companies to halt or slow production.

The agency says transportation equipment sales fell 23.6 per cent to $6.4 billion as motor vehicle sales fell 36.5 per cent to $2.3 billion in April, the largest month-over-month decrease since April 2020.

Sales in the motor vehicle parts industry fell 19.0 per cent to $1.9 billion.

However, manufacturing sales excluding the transportation equipment industry rose 1.5 per cent in April.

Machinery sales rose 14.6 per cent to a record $3.7 billion in April, while wood product sales also rose 6.5 per cent to a record $4.9 billion for the month.

Statistics Canada says sales in constant dollars fell 3.3 per cent in April, indicating a lower volume of goods sold.