(Adds data, background)
OTTAWA, Dec 16 (Reuters) - Canadian manufacturing sales dropped by 0.6 percent in October, dragged down in part by sharply lower sales in the volatile aerospace products and parts sector, Statistics Canada said on Tuesday.
Analysts had expected a 0.4 percent drop from September. Statscan revised September’s month-on-month gain to 2.2 percent from an initial 2.1 percent.
Production of aerospace products and parts fell by 15.6 percent after a 17.4 percent increase in September, a month when output in the sector hit a record high.
The primary metals industry notched a 5.5 percent dip from September, when sales had hit their highest level since October 2008. Excluding these two sectors, overall manufacturing sales grew by 0.4 percent from September.
Manufacturers in 15 of 21 industries, representing more than 60 percent of total manufacturing, reported higher sales. New orders though fell by 1.9 percent on lower demand in the transportation equipment and primary metal industries.
The weaker Canadian dollar helped push the value of unfilled orders up by 0.5 percent to a record high. Many unfilled orders are in the aerospace industry, where prices tend to be in U.S. dollars.
Reporting by David Ljunggren Editing by W Simon