Many factories in Canada went back to business with 0.7 percent increase in their sales, in the month of May. It is estimated that the second quarter of the year will be better. The recovery of sales had happened after a 2.1 percent drop in manufacturing sales, in April. David Madani of Capital Economics said that the 0.7 percent growth in manufacturing sales helped in the GDP growth by more than one percent. The shipment volumes have also risen to 0.7 percent because 11 industries of 21 have registered gains.
Many future indicators suggest that there has been nearly two percent increase in new orders. Economist Jimmy Jean of Desjardins Capital Markets expressed that the report was better than the expected one. The rebound of the manufacturing sector has helped the economy of Canada in reversing the effects of a lifeless year for manufacture sector of Canada.
It had been noted that the manufacturing sector of Canada is predominantly waiting on the recovery of the US economy. It is expected that the stronger performance of the US economy results in a solid growth of Canada economy. However, this might take another few months as the economy of Australia is struggling to recuperate with their economy.
It is observed that the U.S. had reported that its industrial production grew 0.3 per cent in June. Even though, it is insufficient, it is expected that the growth will continue in a higher percentage in coming months.