Canada July factory sales drop 0.9% on metals, petroleum

(Reuters) - Canadian factory sales fell 0.9% in July from June, mainly due to decreases in primary metal industries and petroleum and coal products, Statistics Canada said on Wednesday.

It was the third consecutive monthly decline and in line with Statscan's preliminary estimate for the month as well as analysts' expectations.

The biggest drop was in primary metal industries, which posted its largest decline on record due to lower prices and volumes sold.

Unplanned interruptions at some major primary metal manufacturers as well as concerns over a possible slowdown in the global economy impacted the industry, Statistics Canada said.

Sales of petroleum and coal products decreased 5.3% in July due to lower prices, Statistics Canada said.

The declines were partly offset by increases in food manufacturing sales, which rose 2.5% to C$11.8 billion ($8.95 billion) in July, the highest on record, mainly on higher sales in the grain and oilseed milling industry.

The Canadian dollar was trading 0.1% lower at 1.3180 per U.S. dollar, or 75.87 U.S. cents.

($1 = 1.3187 Canadian dollars)

(Reporting by Ismail Shakil in Ottawa; additional reporting by Dale Smith in Ottawa and Fergal Smith in Toronto; Editing by Bernadette Baum)