The effects of higher interest rates in slowing global economic activity is beginning to show up in some of the broader financial metrics we monitor to track the way our markets are performing.
A good example is manufacturing. We now have February’s numbers. Nationally, revenue in this sector was down pretty much across the board. Sales in nine provinces were down with only PEI staying in the black compared to January’s performance.
The big movers were petroleum and automotive. Not only were prices starting to fall but so did volumes as exports were slowing down.
For Saskatchewan, petroleum was a big factor. We are both a producer and refiner which brought revenues down by roughly 10 per cent for the month. That was the largest monthly decline among the provinces which underscores the fact that our manufacturers were riding high for the past few years and we had the most margin for a slowdown.
Nonetheless, revenues were still 10 per cent ahead of the same time a year ago which left us in the top two provinces on a year-over-year basis.
