Wood Product Sales Continue Upward Trend

Manufacturing sales increased for the fifth consecutive month, up 4.2 per cent to $67.7 billion in February on higher sales in 14 of 21 industries, led by the motor vehicle (+25 per cent), says Statistics Canada. Total manufacturing sales rose 19.5 per cent on a year-over-year basis in February. Sales of wood products rose 8.5 per cent to $4.5 billion in February, driven primarily by higher prices and volumes. Wood product sales have been trending upward since September 2021. Prices of lumber and other wood products increased 6.4 per cent in February 2022, while exports of forestry products and building and packaging materials posted a 5.6 per cent gain. Sales of wood in constant dollars increased 5.4 per cent month over month in February. Manufacturing sales increased in all provinces in February, led by Ontario, Alberta, and British Columbia. Total inventories increased one per cent to $106.7 billion in February, mainly on higher inventories in the petroleum and coal product (+9.1 per cent), primary metal (+3.5 per cent), and motor vehicle (+12.8 per cent) industries. Higher prices of raw materials driven mainly by global supply chain disruptions have contributed to the growth in total inventories since January 2021. Year over year, total inventories rose 20.4 per cent in February 2022. Despite the inventories accumulation, they did not outpace sales and consequently, the inventory-to-sales ratio declined from 1.63 in January to 1.58 in February.