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Manufacturing industry sales lost 2.1% in April.

A global shortage of semiconductor chips has hit the auto industry.

Sales by Canadian manufacturers fell 2.1% to $ 57.1 billion in April, as the auto industry was hit by the global semiconductor chip shortage that forced companies to shut down or slow production Statistics Canada reported on Monday.

Sales of transportation equipment fell 23.6% to $ 6.4 billion in April, while sales of motor vehicles plunged 36.5% to $ 2.3 billion, the federal agency said. This was their most significant month-over-month decline since April 2020.

Sales in the motor vehicle parts industry fell 19.0% to $ 1.9 billion.

A global shortage of computer chips, which are used in a wide range of critical components, has forced automakers to slow production worldwide.

TD Bank economist Omar Abdelrahman pointed out that although some factories restarted production in June, great uncertainty remained for the auto industry.

“A full recovery in production could stretch over the next few quarters, as the impacts of these global shortages and supply chain disruptions persist,” he wrote in a report.

However, Abdelrahman added that the outlook for sales of products made outside the auto industry was not so bad.

“The reopening of provincial economies and the strength of Canada’s largest export market (the United States) should stimulate demand,” he wrote.

Excluding the transportation equipment industry, manufacturer sales rose 1.5% in April.

Machinery sales rose 14.6% to an all-time high of $ 3.7 billion in April, while sales of wood products also rose 6.5% to an all-time high of $ 4.9 billion $ for the month.

Sales of petroleum and coal products fell 7.1% to $ 5.1 billion in April due to maintenance shutdowns at some refineries.

Expressed in constant dollars, manufacturers’ sales fell 3.3% in April, reflecting a drop in the volume of goods sold, Statistics Canada said.

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