UPDATE 1-Canada May factory sales edge up 0.1 percent

Wed Jul 15, 2015 8:55am EDT
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(Adds details from report, analyst comment)

OTTAWA, July 15 (Reuters) - Canadian factory sales rose slightly less than expected in May from April, edging up 0.1 percent on aerospace and petroleum and coal products, Statistics Canada said on Wednesday.

It was the second monthly gain in 2015 for sales, which are affected by changes in the value of the Canadian dollar. Sales rose in 6 of 21 industries as the chemical and machinery industries declined.

Analysts surveyed by Reuters had forecast an increase of 0.4 percent in the value of shipments in May.

The statistics agency said constant dollar sales fell 0.5 percent, indicating an overall lower volume of goods sold.

"The trend in real manufacturing continues to be down from levels reached halfway through last year, meaning that we'll need more time for a more competitive exchange rate and a stronger trading partner to the south to influence the desired rotation away from the consumer and housing," CIBC World Markets said in a note to clients.

Sales of petroleum and coal products rose 5.6 percent from April, mostly reflecting higher prices.

Production in the aerospace products and parts industry, a more volatile part of the manufacturing sector, rose 22.2 percent in May after declining 18.0 percent in April.

(Reporting by Simon Doyle; Editing by Jeffreys Hodgson and Benkoe)