Canadian Factory Sales Poised for Biggest Decline Since April

Preliminary estimates indicate that Canada’s manufacturing sales likely declined 3.3% in January 2026, with the largest decreases occurring in the transportation equipment and machinery subsectors.

Canada’s manufacturing sales rose by 0.6% month-on-month to C$71 billion in December 2025, following a revised 1.3% decline in November and slightly above the preliminary estimate of a 0.5% increase. Sales increased in 12 of the 21 manufacturing subsectors, with motor vehicles (+12) and food products (+2%) contributing the most. A 5.1% drop in petroleum and coal product sales partially offset these gains. On a quarterly basis, sales edged up 0.2% to $213.1 billion in the fourth quarter of 2025, marking the second consecutive quarterly increase. In 2025, total manufacturing sales decreased 0.4% to C$848.7 billion, extending a 1.7% decline in 2024, as weakness in petroleum and coal (-7.1%) and chemicals (-4.9%) offset gains in primary metals (+6.7%) and food (+1.8%).

Canada’s manufacturing sales likely rose 0.5% in December 2025, preliminary estimates indicate. The strongest gains were recorded in the food subsector and in the motor vehicle industry group.