Canadian manufacturing sales have experienced an unexpected upsurge in August according to Statistics Canada, a reassuring recovery for the country’s economy after an unforeseen contraction in the second quarter.

The shrink in the prior quarter was caused by a major wildfire in the oil-producing province of Alberta in May.

Statistics Canada stated that manufacturing sales increased 0.9% to $51.1bn in August, however, with eight provinces recording increases.

The main sales areas include food, primary metal, and petroleum and coal products, with the only decreases in sales taking place in the transportation equipment industry and the fabricated metals industry. The primary metals industry however, has posted a 3.6% gain to reach C$3.89bn.

”The gases business should soon reap the benefits from a renewed increase in demand from these key industry sectors”

James Barr, Senior Business Analyst

According to gasworld Business Intelligence, the Canadian industrial gas market is the second-largest in North America, after the US. The market value for the gases business in the country stood at $1.8bn in 2015, of which roughly 24% of total revenues were generated through the sale of gas to the general manufacturing industry. The primary metals and refining sectors accounted for 8% and 22% of revenues, respectively, whereas sales to the food and beverage sector produced another 7%.

James Barr, Research Analyst, affirmed the importance of the country’s manufacturing sector, “This is promising news for the gas industry in Canada. If this industry growth can be sustained, the gases business should soon reap the benefits from a renewed increase in demand from these key industry sectors.”