Canadian Factory, Wholesale Trade Lifted by Rebound in Auto Industry

A rebound in Canadian auto production in February helped lift factory shipments and wholesale sales, signaling a pickup in industrial activity. Seasonally adjusted factory shipments rose 3.6% month-on-month to C$71.19 billion (about US$51.7 billion), a touch below Statistics Canada’s flash forecast of a 3.8% gain. Wholesale sales recovered as well, rising 2% to C$86.77 billion. The gains followed a revised 3.1% decline in January. The data points to firmer domestic manufacturing and distribution activity, which could be modestly supportive for the Canadian dollar and shares of Canadian industrial and auto-sector firms, though the report was slightly softer than the flash estimate and follows recent volatility in activity.