WRAPUP 1-Auto sector bounce good news for Canadian factories in November

Tue Jan 21, 2014 11:38am EST
 
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* Factory sales rise 1.0 pct vs estimate of 0.3 pct gain

* Wholesale trade flat in Nov from Oct

* Motor vehicle sector shows biggest gains in both reports

* November GDP growth seen at roughly 0.2 pct

By Louise Egan

OTTAWA, Jan 21 (Reuters) - A revived auto sector boosted Canada's manufacturing sales in November and helped prevent a slide in wholesale trade, a trend that may continue into 2014 as a weaker Canadian currency and strengthening U.S. economy spur activity.

Factory sales jumped 1.0 percent to C$50.5 billion ($45.9 billion) in the month, the highest level in nearly two years and approaching levels typically seen before the 2008-09 recession, Statistics Canada data showed on Tuesday.

The gain was well above the expected 0.3 percent advance.

Analysts warned the numbers are not quite as rosy as they appear at first glance. The volatile aerospace industry accounted for much of the gain in factory sales, shooting up 21.3 percent. But that reflects production over several months and will therefore not necessarily be reflected in November's gross domestic product (GDP) figures.   Continued...