From September to October, prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), fell 1.1%, more steeply than the previous month (-0.8%). The IPPI registered its sixth straight monthly decrease since the historical peak reached in April 2007. The reduction in the index essentially represents a decrease in prices for motor vehicles and most other product categories except fruit, vegetables and feed products.

On a 12-month basis, the IPPI declined 1.0%, reinforcing the downward movement of prices. Declines in the prices for motor vehicles and other transportation equipment, primary metal products and pulp and paper products were much stronger than the increase in prices for petroleum and coal products.

The exchange rate, reflecting the ongoing effect of a strong Canadian dollar in relation to its US counterpart, played a major role in the price declines. If the exchange rate that is used to convert these prices had remained unchanged from the previous month, the IPPI would have risen 0.2% compared with September instead of dropping 1.1%, and on a 12-month basis, the IPPI would have risen 2.9% rather than falling 1.0%.

The Raw Materials Price Index (RMPI) rose 0.3% from September to October, a slight increase compared with the marked declines of the previous two months. In October, the RMPI was pushed up primarily by the rise in prices for crude oil and vegetable products, while declines in prices for animals and animal products, ferrous materials and wood moderated its rise.

Compared with October 2006, raw materials cost plants 12.5% more. The increase in the index was caused mainly by higher prices for mineral fuels and vegetable products.

In October, the IPPI was 112.4 (1997=100), down from September's revised level of 113.7. The RMPI was 175.2 (1997=100), up from September's revised level of 174.7.

IPPI: Sixth consecutive decline in industrial price index

Month over month, manufacturers' prices were pulled down mainly by the continuing decline of prices for motor vehicles and other transportation equipment. In addition to this product group, all others registered a decrease with the exception of fruit, vegetables and feed products.

In October, prices for motor vehicles fell 3.1%, owing largely to the strong appreciation of the Canadian dollar against its US counterpart. Manufacturers continued to offer rebates to liquidate old inventories, and some introduced new 2008 models. Prices of motor vehicles continued their downward trend that began in January 2007.

Prices for pulp and paper products fell 1.9% compared with September. In particular, prices for newsprint and other paper for printing fell 4.2%. The downward movement of pulp and paper products that began in March 2007 continued, with prices having fallen 8.3% since the peak reached in February 2007. In addition to overall conditions affecting the forest industry and weak demand for newsprint, prices in October were also affected by the appreciation of the Canadian dollar.

The decrease in prices for other manufacturing products contributed less to the drop in the IPPI, while their decline was related both to the strength of the Canadian dollar against its US counterpart and to excess supply. Prices for meat, fish and dairy products fell 1.7%, owing in particular to an excess supply of beef and pork products. Prices for lumber and other wood products fell 1.9%, led by the price for softwood lumber, which fell 3.3%, pulled down by the decrease in construction activity in the United States.

Price declines were also observed for electrical and communication products (-1.8%), petroleum and coal products (-0.6%), primary metal products (-0.7%) and machinery and equipment (-1.1%). Among primary metal products, prices for aluminum products fell 4.0% due to the depreciation of the US dollar, whereas on the world market the price for aluminum had risen 2.0%, affected by a decline in inventories.

Excluding the prices for petroleum and coal, the IPPI would have decreased 1.2% rather than 1.1%, registering a seventh consecutive monthly decline.

IPPI: 12-month change shows downward price trend strengthening

The IPPI fell 1.0% from October 2006 to October 2007, after posting a modest 0.2% increase in September and decreases in both July (-0.2%) and August (-0.6%). The 12-month decline in the value of the US dollar against its Canadian counterpart—a 13.6% drop from October 2006 to October 2007—had a major effect on how prices evolved in the IPPI. Lower prices for motor vehicles, primary metal products and pulp and paper products more than offset higher prices for petroleum and coal products.

Motor vehicle prices fell 8.6%, their seventh consecutive year-over-year decline. Prices for primary metals fell 8.1%. This drop exceeds the 3.9% declines observed in both August and September and is the steepest on record. Prices decreased 20.0% for nickel products, 13.2% for aluminum products, 8.9% for copper and copper alloy products and 2.8% for iron and steel products. Prices for pulp and paper products fell 6.6%, led by the price for newsprint and other paper for printing (-18.3%).

Price reductions were also observed for electrical and communication products (-4.9%), machinery and equipment (-3.5%) and lumber and other wood products (-3.0%).

The drop in the IPPI was moderated mainly by prices for petroleum and coal products, which rose 17.4%, a second consecutive increase. If petroleum and coal had been excluded, the IPPI would have fallen 2.8% instead of 1.0%. Among other price increases, prices for fruit, vegetables and feed products rose 5.1% and prices for tobacco and tobacco products jumped 13.3%; however, their relative contribution was more modest.

RMPI: Prices for raw materials up slightly

Prices for raw materials rose 0.3% in October after two consecutive monthly declines. The RMPI was pushed up by higher crude oil prices, which registered a second consecutive monthly increase, and by the continuing strength in prices for vegetable products. However, decreases in the prices for animal products, ferrous materials and wood moderated the advance of the RMPI.

Prices for mineral fuels rose 0.7%, the result of a 0.9% increase for crude oil. Since July 2007, the crude oil price index has remained at a high level compared with the first half of 2007. In October, the index was 16.3% higher than its average for the first six months of 2007. This increase is attributable to several factors, including geopolitical tensions on the international scene, excess demand for crude oil and lower inventories. If mineral fuels had been excluded, the RMPI would have declined 0.2% from September instead of rising 0.3%, and it would thus have registered a fifth consecutive decrease.

Prices for vegetable products rose 5.0%, following a 6.5% increase in September. Grain prices jumped 10.1%, led by prices for wheat (+16.7%) and barley (+13.5%). The price for wheat registered robust growth for a second consecutive month, pushing it to a historical peak in October, 81.7% higher than the average recorded in 2006. This boom in the price for wheat is the result of strong world demand and unfavourable weather conditions in Australia, Europe and the United States.

Prices for animals and animal products fell 2.1%, primarily owing to the prices for cattle and hogs for slaughter, which fell 7.9% and 9.5%, respectively, due to excess supply. Price declines were also observed for ferrous materials (-3.3%) and wood (-0.7%), especially logs and bolts, softwood (-1.0%).

On a 12-month basis, raw materials prices rose 12.5% in October, the strongest growth rate since July 2006. Raw materials prices were mainly propelled by price increases for mineral fuels and, to a lesser extent, vegetable products. Mineral fuels jumped 22.6% on the strength of a 29.0% year-over-year increase in the price for crude oil. Without mineral fuels, the RMPI would have risen by 4.0% instead of 12.5%.

All major categories of raw materials posted gains except the prices for animal products, which declined 1.9% compared with October 2006. Prices were down for slaughter animals, especially cattle (-10.0%) and hogs (-12.7%).

Prices for intermediate goods fall, a similar decline to September's

From September to October, prices for intermediate goods fell 0.8%, the same rate as in September and their sixth straight month-over-month decline. The reduction in prices affected almost all products. The biggest contributors to the decrease were pulp and paper products, motor vehicles, lumber and other wood products, primary metal products and meat, fish and dairy products.

Prices for intermediate goods declined 0.4% from October 2006 to October 2007, their second decrease for 2007. Most of the decrease was due to primary metal products, pulp and paper products and motor vehicles.

On the other hand, increases in the prices for petroleum and coal products and for fruit, vegetables and feed products tempered the year-over-year decline in the intermediate goods index.

Prices for finished products pulled down by lower prices for motor vehicles

From September to October, prices for finished products fell 1.7%, the largest decline since November 2004. The finished products index registered a seventh straight month-over-month decline, with a drop of 5.1% in October compared with the peak attained in March 2007. Most of the decrease is attributable to lower prices for motor vehicles and, to a lesser extent, petroleum and coal products, machinery and equipment, and electrical and communication products. Apart from a slight increase in prices for fruit, vegetables and feed products, no other product group was up compared with the previous month.

Since October 2006, prices for finished products have fallen 1.9%, a stronger decrease than the 0.3% decline recorded in September. Prices for finished products were mainly pulled down by motor vehicle prices. On the other hand, the reduction in prices for finished products was slowed by an increase in prices for petroleum and coal products, tobacco products and food products.

Industrial product price indexes
(1997=100)
	Relative importance	October 2006	September 2007r	October 2007p	October 2006 to October 2007	September to October 2007
					% change
Industrial product price index (IPPI)	100.00	113.5	113.7	112.4	-1.0	-1.1
IPPI excluding petroleum and coal products	94.32	109.0	107.3	106.0	-2.8	-1.2
Aggregation by commodities
Meat, fish and dairy products	5.78	107.4	109.4	107.5	0.1	-1.7
Fruit, vegetables, feeds and other food products	5.99	105.1	109.8	110.5	5.1	0.6
Beverages	1.57	122.8	125.5	125.4	2.1	-0.1
Tobacco and tobacco products	0.63	192.8	218.4	218.4	13.3	0.0
Rubber, leather and plastic fabricated products	3.30	118.4	116.0	115.7	-2.3	-0.3
Textile products	1.58	100.3	99.3	99.1	-1.2	-0.2
Knitted products and clothing	1.51	104.3	104.9	104.6	0.3	-0.3
Lumber and other wood products	6.30	84.4	83.5	81.9	-3.0	-1.9
Furniture and fixtures	1.59	119.0	120.2	120.2	1.0	0.0
Pulp and paper products	7.23	106.8	101.7	99.8	-6.6	-1.9
Printing and publishing	1.70	115.4	116.1	115.4	0.0	-0.6
Primary metal products	7.80	147.5	136.4	135.5	-8.1	-0.7
Metal fabricated products	4.11	123.7	124.0	124.0	0.2	0.0
Machinery and equipment	5.48	106.9	104.4	103.2	-3.5	-1.1
Motor vehicles and other transport equipment	22.16	92.3	87.1	84.4	-8.6	-3.1
Electrical and communications products	5.77	93.8	90.8	89.2	-4.9	-1.8
Non-metallic mineral products	1.98	120.0	123.0	122.9	2.4	-0.1
Petroleum and coal products1	5.68	196.9	232.6	231.1	17.4	-0.6
Chemicals and chemical products	7.07	122.9	124.2	124.0	0.9	-0.2
Miscellaneous manufactured products	2.40	112.6	113.0	112.5	-0.1	-0.4
Miscellaneous non-manufactured products	0.38	279.8	397.8	383.5	37.1	-3.6
Intermediate goods2	60.14	117.8	118.3	117.3	-0.4	-0.8
First-stage intermediate goods3	7.71	150.5	146.9	145.1	-3.6	-1.2
Second-stage intermediate goods4	52.43	112.9	113.9	113.1	0.2	-0.7
Finished goods5	39.86	107.1	106.9	105.1	-1.9	-1.7
Finished foods and feeds	8.50	113.8	115.6	115.1	1.1	-0.4
Capital equipment	11.73	100.1	96.4	94.4	-5.7	-2.1
All other finished goods	19.63	108.4	109.4	107.1	-1.2	-2.1
r revised p preliminary 1. This index is estimated for the current month. 2. Intermediate goods are goods used principally to produce other goods. 3. First-stage intermediate goods are items used most frequently to produce other intermediate goods. 4. Second-stage intermediate goods are items most commonly used to produce final goods. 5. Finished goods are goods most commonly used for immediate consumption or for capital investment.

Note to readers

The Industrial Product Price Index (IPPI) reflects the prices that producers in Canada receive as the goods leave the plant gate. It does not reflect what the consumer pays. Unlike the Consumer Price Index, the IPPI excludes indirect taxes and all the costs that occur between the time a good leaves the plant and the time the final user takes possession of it, including the transportation, wholesale, and retail costs.

Canadian producers export many goods. They often quote their prices in foreign currencies, particularly for motor vehicles, pulp and paper products, and wood products. Determining the full effect of fluctuating exchange rates on the IPPI is a difficult analytical task. However, it should be noted that many prices collected to calculate the IPPI are quoted in US dollars and then converted into Canadian dollars. Therefore, a rise or fall in the value of the Canadian dollar against its US counterpart affects the IPPI.

The Raw Materials Price Index (RMPI) reflects the prices paid by Canadian manufacturers for key raw materials. Many of these prices are set in a world market. Unlike the IPPI, the RMPI includes goods not produced in Canada.

Marian Marshall, Vice President, Strategic Development

Marian Marshall, MBA, has also been promoted to Vice President of Strategic Development at Supplierpipeline. Since joining the organization as Director of Critical Projects in 2002, Ms Marshall has spearheaded significant enterprise-wide projects that have modernized and improved productivity at all levels. Ms. Marshall brings extensive experience in project management, critical operations and business administration and will help to guide the ongoing success of Supplierpipeline.


Dave Boulanger, Owner and Chairman of the company's Board of Directors notes that Dan and Marian's combined business experience and pro-active approach will be instrumental in ensuring that Supplierpipeline continues to provide a highly successful customer focused, "We'll Do it" approach toward business and help to guide the ongoing success of Supplierpipeline.

Supplierpipeline Inc. is a global manufacturer and distributor of home improvement and "do-it-yourself" (DIY) hardware products. These quality innovative products are marketed under internationally recognized and long-standing brand names as Lite, Eagle, Gryphon and the JacPac CO2 Power System.

MEXICO CITY, MEXICO AND TORONTO, CANADA - Grupo Modelo, S.A.B de C.V. (gmodeloc), brewer of Canada's #1 imported beer Corona Extra, Molson Coors Brewing Company (TAP) and Molson Canada, announced that they have signed a letter of intent to establish a long-term joint venture to import, distribute and market the Modelo beer brand portfolio in all Canadian provinces and territories, effective January 1st, 2008.

The joint venture will build on the existing successful arrangement whereby Molson imports, distributes and markets Modelo brands in Ontario, Quebec and the Atlantic provinces. Under the new arrangements, Molson Sales organization will be responsible for selling the brands country-wide on behalf of the joint venture.

The joint venture is subject to the successful negotiation of legally binding definitive agreements and the obtainment of all necessary approvals and authorizations.

In the third quarter, all industries recorded decreases in the prices of machinery and equipment purchased. Manufacturing industries (-3.2%) contributed the most to the total MEPI quarterly decrease. Among the sector's subcomponents, the largest contributors to the quarterly decrease were transportation equipment manufacturing (-3.3%), primary metal and fabricated metal product manufacturing (-3.4%) and paper manufacturing (-2.6%). The second largest contributor to the total quarterly decrease was finance, insurance and real estate (-3.8%), with its sub-component, finance and insurance, falling 3.5%.

Among commodities, price decreases for automobiles, excluding passenger vans (-6.6%) and other industry-specific machinery (-3.9%), were the largest contributors to the quarterly decrease.

The US dollar depreciated 4.9% against its Canadian counterpart in the third quarter of 2007.

Using constant dollars, which take price fluctuations into account, the volume of sales edged up 0.1% to $49.6 billion in September. On a year-over-year basis, manufacturing sales were 2.1% higher than in September 2006 on a constant-dollar basis. The US exchange rate continued to play a major role in manufacturing sales as the Canadian dollar appreciated 3.1% against the greenback compared to August.

Most industries weakened in September, with the exception of the transportation equipment industry, which reported a solid increase in sales compared to August. Manufacturing sales decreased 2.7% in September, excluding motor vehicle and parts sales.

On an industry-by-industry basis, 15 of 21 manufacturing industries decreased in September, representing about two-thirds of total sales.

Sales of durable goods advanced 0.6% in September. This was the second increase in the past three months, and reflected sizeable gains in the transportation equipment industry in July and September. Non-durable goods sales continued to slump, decreasing 2.5% for a fourth consecutive monthly decline.

New orders dropped 2.5% in September after an even sharper 5.4% plunge in August. Unfilled factory orders decreased for the first time in a year, down 1.3% from August.

Broadly based weakness reported in September sales

Only six industries reported stronger sales in September, led by an 8.1% gain in the transportation equipment sector. Automotive manufacturers posted a 16.5% increase in sales after a weaker-than-normal August. Aerospace manufacturers also saw an increase in production, with a 3.8% gain in September, following a similar-sized increase in August. Despite the gains in the transportation equipment industry in September, year-to-date sales were only 0.8% higher than in the first nine months of 2006.

Computer and electronic manufacturers led the widespread losses in September, as sales plunged 11.9%. This was a notable reversal as manufacturers in the industry had reported gains in each of the previous three months.

Wood product manufacturers reported continued weakness, with sales dropping 4.9% to $2.0 billion in September. This was the third consecutive monthly decrease. Ongoing strikes in Western Canada were the most immediate cause for the drop, although soft lumber prices and slumping demand in the US also had an impact. Sales of manufactured wood products have been falling steadily for the last three years since reaching $3.2 billion in August 2004.

Labour unrest in the wood manufacturing industry also had a spill-over effect on the paper manufacturing industry. Paper product manufacturers use many by-products from sawmills, and as a result of the strikes in Western Canada, some plants reported problems in procuring sufficient raw materials. Sales dropped 6.0% in September following gains in July and August.

Most provinces slump in September

Manufacturing sales decreased in seven provinces in September. Most of the weakness was focused on the East and West Coasts, with the interior provinces faring slightly better.

Provincial sales in Newfoundland and Labrador (-13.1%) and New Brunswick (-11.6%) tumbled in September. Sales in both provinces dropped largely due to decreases in the non-durable goods industries.

In the West, sales by manufacturers in British Columbia decreased 3.7% to $3.5 billion. Paper product manufacturers slumped 14.4%, losing $75 million in production compared to August. Wood product manufacturers continued to drop, losing 4.1% in September for a fifth consecutive monthly decline.

Saskatchewan and Ontario were the two relatively bright spots in September. Provincial manufacturing sales jumped 3.7% in Saskatchewan, exceeding $1.0 billion for the first time on record. Most of the gains in September were due to chemical manufacturers, and electric equipment, appliance and component manufacturers.

Sales in Ontario rose 0.7% in September, almost entirely due to a 9.7% rebound in sales by the transportation equipment industry.

Manufacturing sales, provinces and territories
	August 2007r	September 2007p	August to September 2007
	Seasonally adjusted
	$ millions		% change
Canada	50,835	50,403	-0.9
Newfoundland and Labrador	477	415	-13.1
Prince Edward Island	116	124	6.8
Nova Scotia	826	826	-0.1
New Brunswick	1,478	1,307	-11.6
Quebec	12,341	12,134	-1.7
Ontario	23,929	24,086	0.7
Manitoba	1,357	1,353	-0.3
Saskatchewan	990	1,027	3.7
Alberta	5,662	5,610	-0.9
British Columbia	3,652	3,517	-3.7
Yukon	2	3	37.7
Northwest Territories including Nunavut	4	3	-24.2
r revised p preliminary

Unfilled orders down for the first time in a year

For the first time since August 2006, manufacturers' unfilled orders decreased. Despite falling 1.3% in September, unfilled orders remained 31.3% higher than September 2006. Unfilled orders are considered by many analysts as an indicator of future shipments, assuming orders are not cancelled.

Aerospace product and part manufacturers reported a 1.6% or $386 million drop in unfilled orders compared to August. However, many Canadian aerospace product manufacturers report their orders and sales in American dollars. Much of the decrease in unfilled orders was due to a rapidly changing exchange rate rather than a decrease in the volume of orders, as the US dollar weakened significantly in September.

Computer and electronic product manufacturers reported a 6.5% drop in unfilled orders in September. A large part of the decrease was due to a major manufacturer moving much of its production to an out-of-country plant at the end of August.

New orders down for the second consecutive month

New orders dropped 2.5% in September after plummeting 5.4% in August.

Computer and electronic product manufacturers had the most sizeable drop in new orders for the month, with a $464 million or 26.6% drop in new orders. This was largely due to a sizeable drop in unfilled orders compared to August.

New orders dropped 30.9% or $405 million in September for the aerospace product and parts industry. New orders in the aerospace industry tend to be highly volatile due to the size and frequency of major orders. In August, new orders also dropped sharply for aerospace manufacturers.

Inventory levels down for most manufacturers

Manufacturers' total inventories decreased 1.0% in September after a slight 0.3% decrease in August. September inventories fell $673 million to $66.1 billion. Despite this drop, inventory levels have been trending fairly flat over the past six months after decreasing slightly at the end of 2006 and during the first few months of 2007. The decrease in September was largely due to a 1.9% decrease in raw material inventories.

Inventory levels were down for most industries, with 16 of 21 industries reporting a drop. Aerospace products and parts manufacturers reported the largest decrease in inventories, down 5.4% to $4.7 billion. This erased the inventory build-up reported during the previous two months.

Inventories in the wood product industry continued to decrease, as work stoppages meant that many manufacturers had to rely on existing finished product inventories rather than production to generate sales. Inventories decreased 1.7% for a third monthly decline.

Inventories were also reduced by primary metal manufacturers, down 1.3% in September. Falling primary metal prices continued to play a significant role in the reported value of inventories. Both prices and inventories for primary metal manufacturers have decreased for five consecutive months.

Inventory-to-sales ratio holds steady

The inventory-to-sales ratio remained at 1.31, unchanged since August. A 1.0% drop in inventories was counter-balanced by a similar-sized drop in manufacturing sales. The inventory-to-sales ratio started to decline in October 2006, moving from 1.36 to a 12-year low of 1.25 in March 2007. Since March, manufacturing sales have weakened while inventory levels have remained fairly stable, resulting in a subsequent increase to the current ratio.

The finished product inventory-to-sales edged up a point in September to 0.45.

These ratios are a measure of the time, in months, that would be required to exhaust inventories if sales were to remain at their current level.

Sales, inventories and orders in all manufacturing industries
	Sales		Inventories		Unfilled orders		New orders		Inventory-to-sales ratio
	Seasonally adjusted
	$ millions	% change	$ millions	% change	$ millions	% change	$ millions	% change
September 2006	49,789	-3.2	67,407	-0.1	41,439	0.4	49,949	-1.6	1.35
October 2006	49,465	-0.7	67,489	0.1	41,590	0.4	49,616	-0.7	1.36
November 2006	50,611	2.3	67,466	0.0	42,356	1.8	51,378	3.6	1.33
December 2006	51,969	2.7	66,714	-1.1	43,586	2.9	53,199	3.5	1.28
January 2007	51,142	-1.6	66,672	-0.1	48,660	11.6	56,215	5.7	1.30
February 2007	51,290	0.3	66,172	-0.7	50,987	4.8	53,617	-4.6	1.29
March 2007	53,059	3.5	66,154	0.0	51,287	0.6	53,359	-0.5	1.25
April 2007	52,703	-0.7	66,781	0.9	51,848	1.1	53,264	-0.2	1.27
May 2007	52,087	-1.2	66,533	-0.4	52,628	1.5	52,868	-0.7	1.28
June 2007	51,326	-1.5	66,570	0.1	53,135	1.0	51,869	-1.9	1.30
July 2007	51,994	1.3	66,990	0.6	55,011	3.5	53,870	3.9	1.29
August 2007	50,835	-2.2	66,796	-0.3	55,140	0.2	50,965	-5.4	1.31
September 2007	50,403	-0.9	66,122	-1.0	54,410	-1.3	49,673	-2.5	1.31

Manufacturing industries except motor vehicle, parts and accessories
	Sales		Inventories		Unfilled orders		New orders
	Seasonally adjusted
	$ millions	% change	$ millions	% change	$ millions	% change	$ millions	% change
September 2006	42,509	-2.8	64,105	-0.2	39,568	1.2	42,985	-0.8
October 2006	42,511	0.0	64,202	0.2	40,124	1.4	43,067	0.2
November 2006	42,833	0.8	64,221	0.0	41,114	2.5	43,822	1.8
December 2006	43,389	1.3	63,613	-0.9	42,465	3.3	44,740	2.1
January 2007	43,462	0.2	63,565	-0.1	47,528	11.9	48,526	8.5
February 2007	43,471	0.0	63,160	-0.6	49,933	5.1	45,876	-5.5
March 2007	44,529	2.4	63,169	0.0	50,335	0.8	44,931	-2.1
April 2007	45,033	1.1	63,785	1.0	50,835	1.0	45,533	1.3
May 2007	44,658	-0.8	63,574	-0.3	51,579	1.5	45,402	-0.3
June 2007	44,421	-0.5	63,567	0.0	52,093	1.0	44,972	-0.9
July 2007	43,989	-1.0	63,969	0.6	53,977	3.6	45,872	2.0
August 2007	43,913	-0.2	63,755	-0.3	54,204	0.4	44,140	-3.8
September 2007	42,718	-2.7	63,181	-0.9	53,550	-1.2	42,064	-4.7

Note to readers

Preliminary estimates are provided for the current reference month. Estimates, based on late responses, are revised for the three prior months.

Non-durable goods industries include food, beverage and tobacco products, textile mills, textile product mills, clothing, leather and allied products, paper, printing and related support activities, petroleum and coal products, chemicals, and plastics and rubber products.

Durable goods industries include wood products, non-metallic mineral products, primary metals, fabricated metal products, machinery, computer and electronic products, electrical equipment, appliances and components, transportation equipment, furniture and related products, and miscellaneous manufacturing.

Unfilled orders are a stock of orders that will contribute to future sales assuming that the orders are not cancelled.

New orders are those received whether sold in the current month or not. They are measured as the sum of sales for the current month plus the change in unfilled orders. Some people interpret new orders as orders that will lead to future demand. This is inappropriate since the "new orders" variable includes orders that have already been sold. Readers should note that the month-to-month change in new orders may be volatile. This will happen particularly if the previous month's change in unfilled orders is closely related to the current month's change.

Not all orders will be translated into Canadian factory sales because portions of large contracts can be subcontracted out to manufacturers in other countries. Also, some orders may be cancelled.