UPDATE 1-Canada Jan factory sales rise by 2.4 percent

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Tue Mar 16, 2010 8:34am EDT

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OTTAWA, March 16 (Reuters) - The value of Canadian manufacturing shipments rose by 2.4 percent in January from December, the fifth consecutive monthly increase, in part due to a stronger primary metals sector, Statistics Canada said on Tuesday.

Analysts had predicted a 0.5 percent rise from December. Constant dollar manufacturing sales, which are measured in 2002 prices, were up by 2.2 percent.

Most industries reported an increase in sales for January, with 17 of the 21 groups measured posting gains. Primary metals manufacturers were up by 8.5 percent, in part due to a rise in production after several plants resumed operations in January.

New orders were up by a modest 0.2 percent after the 7.3 percent month-on-month gain reported in December.

Inventories remained unchanged. The inventories-to-sales ratio declined for the seventh time in eight months, dropping to 1.33. Statscan said this was the lowest ratio since the 1.32 reported in September 2008. (Reporting by David Ljunggren; Editing by James Dalgleish)

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