Statistics Canada reports manufacturing sales up 1.4% in May

According to Statistics Canada, manufacturers' sales rose 1.4 percent to $ 57.1 billion in May.

The improvement followed a decline of 1.1 percent in April.

Economists were expecting an increase of 0.5 percent in May. Derek Holt, Vice President, Scotiabank Financial Markets Economics, said the numbers were "much higher than expected."

According to Statistics Canada, sales rose in 14 of 21 industries, led by: chemical industries, machinery and wood products. Sales increased in seven of the ten provinces, led by BC and Alberta. In contrast, Newfoundland saw a 29.7% decline in manufacturing sales compared to last month.

The transportation equipment industry posted the largest decline. Omar Abdelrahman, an economist at TD said that the 6.6% decline in motor vehicle sales "is far from its peak cycle and that, even outside of continuing commercial uncertainties, US demand appears to have plateaued , limiting the growth of the sector.

Manufacturers' sales in constant dollars increased 0.9%.