Signs that the Canadian economy is slowing are showing up more frequently in the data that tracks various steps along the supply chain. Among the most recent indicators to show a pullback is manufacturing.
This has been a particularly strong sector for Saskatchewan over the past few years but a slowing national economy has two effects on us: we see volumes decline which triggers the second effect of lower prices on falling demand.
The big one for us in the most recent manufacturing data from June is petroleum products. We saw the value of those shipments fall which compounded the declines in farm fertilizer figures which had spiked in the months leading up to the completion of spring seeding.
Saskatchewan manufacturers still saw sales volumes of $1.7 billion in June but that was 15 per cent lower than May’s results and lagged the same period last year by more than 20 per cent.
Manufacturers in Regina posted a slight gain for the month but trailed last year by 22 per cent while Saskatoon firms had a small decline in May but delivered better results than a year earlier.
