* Sales rise 0.7 percent, matching expectations
* Chemical industry posts biggest gain in dollar terms
OTTAWA, July 16 Canadian factory sales in May
rose by 0.7 percent from April, making up some of the ground
they lost during a plunge the previous month, Statistics Canada
said on Tuesday.
The advance - just the second in five months - matched
analysts' predictions. Statscan revised April's initial 2.4
percent drop to 2.1 percent, which represents the worst
month-on-month decline since August 2009.
Sales increased in 11 of 21 industries, representing about
57 percent of the manufacturing sector. Constant dollar sales
rose by 0.7 percent on higher volumes.
The chemical industry posted the biggest sales gain in
dollar terms on an unusually large increase in fertilizer sales.
Wetter and colder weather delayed spring planting this year,
which meant the annual increase in fertilizer production
occurred later than usual, Statscan said.
Inventories edged down by 0.2 percent, the first decline
after four months of gains, while the inventory-to-sales ratio
slipped to 1.42 in May from 1.43 in April. The values for the
ratio in April and May were the highest since late 2009.
Graphic - Canadian manufacturing sales: