UPDATE 1-Canadian manufacturing sales rise 0.8 pct in June

Tue Aug 16, 2016 8:49am EDT
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OTTAWA Aug 16 (Reuters) - Canadian manufacturing sales rose in June to recover much of the previous month's decline, led by gains in the machinery and transportation equipment sectors, data from Statistics Canada showed on Tuesday.

The 0.8 percent rise was a touch above economists' expectations for an increase of 0.7 percent. Sales were up in 15 out of 21 industries, accounting for 62 percent of the manufacturing sector.

In May, manufacturing sales fell 1 percent.

Nearly three-quarters of June's increase was due to sales of machinery and transportation equipment. Machinery sales rose 5.8 percent, the largest gain since September 2015, with higher sales seen in such areas as commercial and agricultural.

Sales in the transportation equipment industry rose 1.4 percent, due to higher sales in the motor vehicle parts and assembly sectors.

Nonetheless, economic growth is still expected to have contracted in the second quarter due to the disruption caused by the May wildfires in northern Alberta.

The effects of the Fort McMurray wildfires were still being felt by some, with 3.2 percent of manufacturers surveyed saying their business activities were affected in June, Statistics Canada said.

(Reporting by Leah Schnurr Editing by W Simon)