Canada: Manufacturing Sales decline by 0.6% in May vs. +1% expected

• Manufacturing Sales in Canada fell more than expected in June.
• USD/CAD pair extends daily decline toward 1.2450 despite uninspiring data.

Manufacturing Sales in Canada contracted by 0.6% on a monthly basis in May, the data published by Statistics Canada revealed on Wednesday. This reading followed April's decline of 2.1% and came in worse than the market expectation for an increase of 1%.

"Sales in constant dollars decreased 2.5% to $48.2 billion in May, the second consecutive decline indicating a lower volume of goods sold as manufacturers continued to deal with supply chain issues," the publication further read. "The Industrial Product Price Index increased 2.7% in May, on higher prices for lumber and other wood products (+17.9%). Prices of raw materials purchased by manufacturers rose 3.2%."

Market reaction

Despite the disappointing data, the USD/CAD pair came under bearish pressure on renewed USD weakness and was last seen losing 0.4% on the day at 1.2460.